Software-as-a-service (Saas) and artificial intelligence (AI) provider Powerfleet has attained a secondary listing on the JSE amid its merger with fleet and mobile asset management solution company MiX Telematics.
Powerfleet has its primary listing on Nasdaq and its headquarters in Woodcliff Lake, New Jersey, but is seeking to harness the capital markets in South Africa to propel its growth and expand its global footprint.
The “transformative combination” with Powerfleet acquiring MiX will ensure accelerated growth in recurring revenues, increased profitability and expanded avenues for shareholder value, says Powerfleet CEO Steve Towe.
He adds that the companies are swiftly executing a business integration strategy that is known for delivering concrete outcomes.
In turn, MiX’s shares have been delisted from the JSE and the NYSE, respectively, paving the way for a formidable force in the mobile asset AI, Internet of Things and Saas space.
The merged entity is expected to foster a robust stream of new business and technological innovation, bolstered by an enhanced capital structure and synergies of combined expertise.
Upon consummation of the merger, MiX shareholders will exchange their shares for Powerfleet common shares, with the post-transaction ownership of the combined entity consisting of 65.5% of Powerfleet common shares held by former MiX shareholders and 34.5% of Powerfleet common shares held by existing Powerfleet shareholders.
Powerfleet’s listing brings the number of listings on the JSE to 284 with an overall market capitalisation of R17.8-trillion.
JSE capital markets director Valdene Reddy comments that the company’s decision to list with JSE underscores the exchange’s position as a gateway for global firms seeking to access African capital markets.
“We look forward to supporting Powerfleet in their growth journey and witnessing the synergies this business combination brings to our dynamic market.”