I..D. Systems, Inc. today announced that it has acquired Asset Intelligence, LLC, a business unit of General Electric Co., for $15 million in cash, with an additional cash consideration of up to $2 million payable upon the achievement of certain performance milestones.
Hackensack, NJ-based I.D. Systems is a provider of wireless asset management solutions. Asset Intelligence provides trailer and container tracking solutions for manufacturers, retailers, shippers and freight transportation providers with more than 120,000 units under contract, noted I.D. Systems.
I.D. Systems said that, as part of the separation from GE, Asset Intelligence has entered into a multi-year joint marketing agreement with GE Capital’s Trailer Fleet Services (TFS) business unit. TFS provides trailer rentals, leases and sales across North America. Under this agreement, TFS will treat Asset Intelligence as a preferred supplier and market Asset Intelligence’s products and services to its customers, said I.D. Systems. However, the news release does not state if the agreement is exclusive. Asked about that, a GE spokesperson told FleetOwner that the terms of the agreement could not be discussed. A call to I.D. Systems fro comment on that question has not yet been returned.
“This acquisition positions I.D. Systems to become the world’s preeminent provider of wireless information technology for managing high-value corporate assets,” said Jeffrey Jagid, I.D. Systems chairman & CEO. “The focus of Asset Intelligence on trucking, rail, marine and intermodal applications significantly expands the scope of assets addressed by I.D. Systems’ solutions. The customer base, alliances and technology of Asset Intelligence also fit exceptionally well within I.D. Systems’ strategic growth plan, which includes organic
growth with existing customers, cultivation of new applications and markets, development of new sales channels, and expansion of our intellectual property portfolio—all with the goal of making our revenues more diversified and predictable, and increasing shareholder value.
“Asset Intelligence’s service-oriented contract model provides I.D. Systems with a high-margin, recurring revenue stream that should increase our top-line results over prior years and help reduce quarterly revenue volatility,” continued Jagid. “The acquisition also provides cross-selling opportunities; we can offer I.D. Systems’ vehicle management systems to customers of Asset Intelligence and Asset Intelligence’s trailer tracking systems to customers of I.D. Systems.”
Asset Intelligence is managed by Darryl Miller, a 23-year GE veteran, who will continue to serve as COO of the business unit, reporting directly to Jagid.