I.D. Systems Completes Keytroller Acquisition

8/1/17

WOODCLIFF LAKE, N.J., Aug. 01, 2017 (GLOBE NEWSWIRE) -- I.D. Systems, Inc. (NASDAQ:IDSY), a leading provider of mobile asset management technology and solutions for the Industrial Internet of Things, has completed its acquisition of Keytroller, LLC, a manufacturer and marketer of electronic products for managing forklifts, construction vehicles, and other industrial equipment.

Combined, the companies have installed hundreds of thousands of management devices on forklifts and other industrial trucks in more than a dozen countries around the world. I.D. Systems markets its flagship PowerFleet® system primarily to end users and lift truck OEMs as a premier solution for global enterprises with large fleets of equipment across multiple sites. Keytroller markets its broad line of forklift management devices mainly through a large network of lift truck dealers, offering solutions for many different fleet sizes at a wide range of price points.

“One of the most important advantages the acquisition of Keytroller gives us, is now we can truly offer the perfect solution to any customer—no matter how large or small their fleet is, what problem they are trying to solve, or what budget they have to work with,” said I.D. Systems CEO Chris Wolfe. “In addition, together, I.D. Systems and Keytroller give customers the best option as an OEM-independent provider of forklift management technology. It’s vital for a fleet management system to work seamlessly across all makes, models and types of industrial trucks.”

“Keytroller and I.D. Systems complement each other incredibly well,” said Keytroller president Terry Wickman, who will stay on as an I.D. Systems executive vice president and run Keytroller as an independent division. “Our product mix and technologies cover everything a forklift fleet manager could want, soup to nuts, and our distribution channels have minimal conflicts. We rarely compete head-to-head. Joining together is a win-win for our companies, our partners, and our end users—all of us will benefit from a broader choice of solutions and a larger, more capable service and support organization.”

In 2016, I.D. Systems recorded revenue of $36.8 million, while Keytroller generated $6.6 million in revenue and net income of $1.5 million. Keytroller has achieved average annual revenue growth of more than 25% per year over the past three years.

Unmatched Single Source of Industrial Truck Management Solutions

Keytroller has earned a reputation in the material handling industry as an innovative provider of forklift access control/monitoring systems, speed controllers, forklift scales, truck-mounted cameras, impact sensors, wireless hour meters, pedestrian safety systems, and other electronic devices. The company offers about 40 different products, providing good/better/best functionality and pricing.

By adding Keytroller’s mid-range and economy products to I.D. Systems’ market-leading PowerFleet® industrial truck management system, the combined company’s offerings form an unmatched single source of fleet management technology for industrial truck owners and operators.

The acquisition of Keytroller also gives I.D. Systems a new source of industrial truck usage data for its PowerFleet IQ® analytics database, enhancing the value of that tool for multi-site enterprises. Joining forces also opens new potential opportunities for the two companies to cross-sell to each other’s customers and consolidate and streamline product development.

Business Continuity and Growth

Because Keytroller has enjoyed profitable growth in recent years, there will be no radical changes to the way it conducts business. While I.D. Systems expects to benefit from some operational and cost synergies, Keytroller will run as an independent division led by the company’s founder, Terry Wickman.

“Acquiring Keytroller was a rare opportunity for I.D. Systems to grow inorganically in the industrial truck management business,” added Wolfe. “We expect to reap both immediate benefits—from a business already running profitably today—and long-term benefits, such as a more predictable, profitable revenue stream from a much more diverse customer base.”

“Together, we believe I.D. Systems and Keytroller are unquestionably the world’s number one provider of forklift management solutions,” concluded Wickman. “We are eager to show how easy and affordable it is to get exactly the right solution for industrial truck management—at the right price—for safer, smarter, more successful material handling operations.”

About I.D. Systems

Headquartered in Woodcliff Lake, New Jersey, with subsidiaries in Texas, Germany, and the United Kingdom, I.D. Systems is a leading global provider of wireless M2M solutions for securing, controlling, tracking, and managing high-value enterprise assets, including rental cars, industrial vehicles, trailers, containers, and cargo. The Company’s patented technologies address the needs of organizations to monitor and analyze their assets to increase efficiency and productivity, reduce costs, and improve profitability.

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