ID SYSTEMS ACQUIRES ASSET INTELLIGENCE

ID Systems, provider of wireless asset management solutions, has acquired Asset Intelligence a business unit of General Electric (GE) for US$15 million in cash, with an additional cash consideration of up to $2 million payable upon the achievement of certain performance milestones.

Asset Intelligence provides trailer and container tracking solutions for manufacturers, retailers, shippers and freight transportation providers, and has more than 120,000 units under contract.

“This acquisition positions ID Systems to become the world’s preeminent provider of wireless information technology for managing high-value corporate assets,” said Jeff rey Jagid, ID Systems’ chairman and CEO.

“The focus of Asset Intelligence on trucking, rail, marine and intermodal applications significantly expands the scope of assets addressed by ID Systems’ solutions. Its serviceoriented contract model provides ID Systems with a high-margin, recurring revenue stream that should increase our top-line results over prior years and help reduce quarterly revenue volatility,” emphasized Jagid.

The ID Systems chief also noted that the acquisition provides cross-selling opportunities: ID Systems’ vehicle management systems being off ered to customers of Asset Intelligence, and the latter’s trailer tracking systems to customers of ID Systems.