Pointer Telocation Ltd. (NASDAQ: PNTR) (TASE: PNTR) has signed a binding agreement to acquire Cielo Telecom, a fleet management services company based in South Brazil, the company said.
Cielo Telecom manages fleet customers covering approximately 16,000 trucks.
In consideration for this acquisition, Pointer will make a cash payment of approximately BRL21 million (approximately USD6.5 million).
The company said the acquisition will expand its customer base and enable it to better penetrate the southern part of Brazil and participate in the truck segment of fleet management.
Pointer Telocation is a developer, manufacturer and operator of mobile resource management (MRM) to the automotive and insurance industries.