RMB takes a $100 million or R1.8 billion bet on Powerfleet, a global telematics business listed on the Nasdaq, with a secondary listing on the Johannesburg Stock Exchange (JSE).
The entity was created from a merger between Powerfleet and Mix Telematics (Mix). The combined business aims to become a top-tier global provider of Internet of Things (IoT) and Software as a Service (SaaS) solutions that optimise the performance of mobile assets.
The debt facility from RMB was tailored to cater for significant complexity in this multi-jurisdictional business. It will enable the merged Powerfleet entity to leverage the strengths of each business, maximise cross-sell and upsell opportunities across multiple asset types on a global scale, and unlock value for their joint customers across verticals.
“Our structuring needed to take all of this into account the multiple jurisdictions the respective entities operated in, while adopting a forward-looking view of the synergies of the merged entity across the supply chain, marketing, research and development,” explains Blessings Magagane, Team Lead in the Debt Financing Solutions Business at RMB.
“The result is a bespoke, single bank financing solution, which enabled us to become the sole lender to the merged entity. RMB’s agility and swift decision-making capabilities played a crucial role delivering a solution for Powerfleet.”
RMB’s client-centric approach, coupled with its emphasis on relationship-building, led to successful funding with an ideal capital structure that supports future expansion. Following the successful implementation of the business combination and funding, RMB will further support Powerfleet in streamlining its transactional banking requirements in South Africa.
“We are thrilled with the strategic partnership we’ve developed with RMB as we advance our global ambitions, particularly through the recent merger with MiX Telematics Ltd.,” stated David Wilson, CFO of Powerfleet Inc.
“RMB’s tailored approach to funding, distinguished by their deep market insights and flexibility, truly set them apart. This collaboration was not only an essential component of a smooth merger process but also positions Powerfleet to harness emerging opportunities and drive transformative outcomes in our industry.”
“This deal showcases RMB’s ability to partner with large TMT corporate clients and deliver holistic banking solutions as they look to grow their businesses across Africa. We look forward to growing our relationship with Powerfleet as they expand their business on the continent” says Arun Varughese, Co-head of the TMT Sector at RMB.
