The acquisition involved an additional cash consideration of up to $2 million payable if certain performance milestones are reached.
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.
Asset Intelligence has also entered into a multi-year joint marketing agreement with GE Capital's Trailer Fleet Services business, under which TFS will treat Asset Intelligence as a preferred supplier and market Asset Intelligence's products and services to its customers.
I.D. Systems expects the acquisition to add $12 to $15 million to its GAAP revenue for 2010, including approximately $11 million from recurring services.
"The focus of Asset Intelligence on trucking, rail, marine and intermodal applications significantly expands the scope of assets addressed by I.D. Systems' solutions," said Jeffrey Jagid, I.D. Systems' chairman and CEO. "The customer base, alliances and technology of Asset Intelligence also fit exceptionally well within I.D. Systems' strategic growth plan, which includes organic growth with existing customers, cultivation of new applications and markets, development of new sales channels, and expansion of our intellectual property portfolio-all with the goal of making our revenues more diversified and predictable, and increasing shareholder value."
Jagid says the acquisition will also provide the company with cross-selling opportunities.
Darryl Miller, who currently manages Asset Intelligence, will stay on, serving as chief operating officer of the business unit.