I.D. Systems [IDSY] has acquired Asset Intelligence, LLC, from General Electric [GE] for $15 million in cash, giving it trailer and container tracking and monitoring solutions to go with its existing vehicle tracking and monitoring solutions. The deal includes a $2 million earn-out provision based on unit sales this year. Asset Intelligence, which is expected to contributed between $12 million and $15 million to I.D. System’ sales this year, provides truck carriers and shippers hardware, software and services to for real-time data tracking and monitoring of shipments for asset optimization, cold chain management, fleet maintenance, fuel management, and security and safety. The company’s solutions cover the trucking, rail, marine and intermodal applications. Asset Intelligence’s management will remain with the company. I.D. Systems expects the deal to be dilutive to earnings in 2010, neutral in 2011 and highly accretive thereafter. Cowen and Co. served as the financial advisor to I.D. Systems on the transaction. Morgan Keegan security analyst Brian Ruttenbur likes the fact that I.D. Systems will be gaining “scale” with the purchase but notes that the company still isn’t close to being profitable and that organic growth remains “highly uncertain.”
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