Powerfleet and MiX blaze a new fleet management trail

The merger of Powerfleet and MiX Telematics has been successfully completed, forming a significant player in the mobile asset Artificial Intelligence of Things (AIoT) Software-as-a-Service (SaaS) sector.

The powerful combination creates a scaled, global entity of choice focused on unifying business operations by simplifying how customers manage, analyse, and utilise data to drive improved business performance.

“Combining Powerfleet with MiX, an extremely well-run and profitable organisation, will establish the combined entity as a world-class SaaS company, giving us the speed and capability to achieve improved growth in high-quality recurring revenues and expanded profitability much sooner,” says Stefan Joselowitz, CEO of MiX Telematics, who intends to retire at the conclusion of this transaction but plans to continue as a shareholder of the new combined entity.

The newly formed entity resulting from the merger of Powerfleet and MiX Telematics will operate as MiX by Powerfleet in the Africa region. “This transformative combination positions Powerfleet as a leading global AIoT SaaS company, setting the stage for accelerated growth in recurring revenues, increased profitability, and expanded avenues for creating shareholder value,” says Steve Towe, Powerfleet’s CEO. “We’re swiftly executing a proven business integration strategy known for delivering concrete outcomes, underpinned firstly by a robust US$25 million-plus EBITDA expansion programme in concert with medium-term high growth. This approach is designed to accelerate the integration process, allowing us to promptly focus on driving increased shareholder value and enhancing our customers’ experience.”

A new board of directors of Powerfleet has now been appointed. The new board consists of Michael Brodsky, chairperson; Steve Towe, CEO; and Ian Jacobs, the previous MiX chairperson. Powerfleet is also pleased to announce Mike McConnell as a new board member. McConnell has a strong history as a corporate director, focused on enhancing shareholder value.

“On behalf of the entire board, we are delighted by the successful completion of the business combination between Powerfleet and MiX,” shares Brodsky. “We are highly confident the combined entity will emerge as a strongly unified, differentiated, and efficient company.”

Towe adds: “Amidst a fragmented market where consolidation and scale continue to be strong drivers, Powerfleet possesses a clear vision and mission, anchored by our compelling Unity platform. Our device-agnostic data ingestion engine and third-party integration capabilities, unique to Unity, deliver unparalleled value for our customers. We unify their operations, providing a single source of truth for their people, their assets, and business processes – enabling impactful business change and enhanced performance.”

The combined geographical footprint, deep vertical expertise, and expanded software solution sets – coupled with the extensive direct and indirect sales channel capabilities – should enable Powerfleet to maximise significant cross-sell and upsell opportunities within the impressive joint customer base, promoting recurring SaaS revenue. This positions Powerfleet to move towards Rule of 40 performance within two years of closing this transaction.

“I am extremely proud of our heritage and the high-quality business MiX is today, and I am delighted to have finally found an ideal partner that shares our values and strategic goals to take the company to the next level,” says Joselowitz. 

“We strongly believe in Powerfleet’s Unity strategy and our combined scale perfectly positions us to revolutionise the mobile asset IOT SaaS industry and drive transformative growth. As a shareholder, I am extremely excited about how this combination will accelerate the achievement of our shared strategic goals,” he concludes.