SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
F O R M 6-K
REPORT OF FOREIGN
PRIVATE ISSUER PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
For the month of March, 2007
POINTER TELOCATION LTD.
1 Korazin Street
Givatayim, 53583
Israel
Indicate by check mark whether the registrant files or will file annual reports
under cover of Form 20-F or Form 40-F.
Form 20-F x Form 40-F o
Indicate by check mark whether by furnishing the information contained in this
Form, the registrant is also thereby furnishing the information to the
Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes o No x
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82-
For Immediate Release
Pointer Telocation Expands its Global Presence: Announces Signature of Non-Binding Letter of Intent for Acquisition of the Controlling Interest in the Business of the Leading Provider of Road Side Assistance in Argentina, in Consideration for $9 million.
Givatayim, Israel March 12, 2007, Pointer Telocation Ltd. (Nasdaq: PNTR), a leading provider of services to insurance companies and car owners, including road-side assistance, towing and stolen vehicle retrieval services in Israel, Argentina and Mexico, announced today its signed a non-binding Letter of Intent to acquire controlling ownership of the leading provider of Road Side Assistance & Towing services in Argentina in consideration for $9 million.
Closing of the transaction is expected during 2008 and is pending execution of a definitive agreement by the parties and agreement on the due diligence process to be conducted.
The Argentinean road side assistance company serves approximately 1,800,000 subscribers through its contacts with leading insurance companies and automotive manufacturers in Argentina. Based on the level of its current operations, the Argentinean company’s business generates annualized revenues of approximately $18 million.
Danny Stern, Pointer’s CEO commented “We expect that the closing of this acquisition will allow Pointer to implement its growth strategy, increase subscriber numbers and broaden our line of services in Argentina. This is the first major action in implementing Pointer’s strategic plan of increasing our global presence throughout M&As. We expect to achieve synergetic advantages from the broader service offering in Argentina, the relationship with more insurance companies as well as automotive manufacturers, that are expected to lead to improvement of our market positioning, growth and profitability”.
About Pointer Telocation: Pointer Telocation Ltd www.pointer.com provides range of services to insurance companies and automobile owners, including road-side assistance, vehicle towing, stolen vehicle retrieval, fleet management and other value added services. Pointer Telocation provides services, for the most part, in Israel, through its subsidiary Shagrir and in Argentina and Mexico through its local subsidiaries. Independent operators provide similar services in Russia and Venezuela utilizing Pointer’s technology and operational know-how.
Safe Harbor Statement
This press release contains forward-looking statements with respect to the business, financial condition and results of operations of Pointer and its affiliates. These forward-looking statements are based on the current expectations of the management of Pointer, only, and are subject to risk and uncertainties relating to changes in technology and market requirements, the company’s concentration on one industry in limited territories, decline in demand for the company’s products and those of its affiliates, inability to timely develop and introduce new technologies, products and applications, and loss of market share and pressure on pricing resulting from competition, which could cause the actual results or performance of the company to differ materially from those contemplated in such forward-looking statements. Pointer undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. For a more detailed description of the risks and uncertainties affecting the company, reference is made to the company’s reports filed from time to time with the Securities and Exchange Commission.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| POINTER TELOCATION LTD. By: /s/ Yossi Ben Shalom —————————————— Yossi Ben Shalom Chairman of the Board of Directors |
Date: March 12, 2007