I.D. Systems Acquires GE Asset Intelligence

I.D. Systems, Inc., a provider of wireless asset management solutions, 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. Asset Intelligence provides trailer and container tracking solutions for manufacturers, retailers, shippers and freight transportation providers, and has more than 120,000 units under contract.

In connection with its separation from GE, Asset Intelligence has entered into a multi-year joint marketing agreement with GE Capital’s Trailer Fleet Services business (TFS), a provider of 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.

“This acquisition positions I.D. Systems to become the world’s preeminent provider of wireless information technology for managing high-value corporate assets,” said. “

The focus of Asset Intelligence on trucking, rail, marine and intermodal applications will expand the scope of assets addressed by I.D. Systems’ solutions, notes Jeffrey Jagid, I.D. Systems’ chairman and CEO. “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,” Jagid notes. “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 chief operating officer of the business unit, reporting directly to Jagid.