Why Artificial Intelligence Stock Powerfleet Triumphed Today
One of the more tightly specialized artificial intelligence (AI) stocks on the market had quite a memorable Wednesday. On news that it is bulking up with an acquisition, investors piled into Powerfleet (NASDAQ: AIOT), sending its share price more than 7% higher. That was outstanding when matched against the performance of the S&P 500 index; it slumped by 0.3% across the Hump Day trading session.
Powerfleet, whose stock in trade is developing AI of things (AIoT) solutions for the transportation industry, announced the deal shortly before market open. The company has signed a definitive agreement to purchase privately held peer Fleet Complete. The buyer said the total transaction value of the acquisition is $200 million.
Powerfleet said it will finance the deal mainly with a $125 million senior secured loan facility, accompanied by funds from a planned $70 million secondary common stock issue. An additional $15 million should come from a private placement of common shares to an existing shareholder.
Source Fool.com
