PowerFleet to acquire Fleet Complete for $200M

Powerfleet announced it has entered into a definitive agreement for the acquisition of Fleet Complete, a prominent player in connected vehicle technology and fleet management. With 2.6M total combined subscribers and forecasted combined revenue of over $400M, the acquisition is expected to solidify Powerfleet’s position as a true global leader in the rapidly expanding AIoT market, driving toward “Rule of 40” SaaS financial performance in the medium term. Benefits expected from the transaction include: hteaddition of Fleet Complete strengthens Powerfleet’s strategic position as a leader in the AIoT SaaS market, with a combined subscriber base of 2.6 million. The acquisition strengthens Powerfleet’s North American presence and fuels top-line growth in key international markets, including Europe and Australia. The acquisition significantly enhances the scale of Unity’s data ingestion, integration capabilities, and cross-sell/upsell potential with the addition of 600,000 new subscribers. The acquisition opens significant cross-selling opportunities through Fleet Complete’s well-established indirect channel relationships, especially with major US and Canadian telecommunication carriers, offering considerable growth potential. Highly accretive transaction, valued at 8 times pre-synergy and 5 times post-synergy adjusted EBITDA, with improved geographical revenue mix and multiple avenues for accelerated topline growth driving toward “Rule of 40” SaaS financial performance in the medium term. Total transaction value of $200M. Incorporating Fleet Complete’s annual recurring revenue and EBITDA Guidance of $105M and $25M, respectively, combined business is projected to generate revenue of $405M, including $300+ million in high-margin recurring SaaS revenue, and $85M in adjusted EBITDA for FY25. Transaction is subject to customary closing conditions and is expected to close on October 1.