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ACQUISITION OF BUSINESS (Tables) | 12 Months Ended
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Dec. 31, 2019
Business Combinations [Abstract] |
Schedule of Purchase Price Allocation | Following is a description of the fair value of the consideration, the Company previous investment in Road Track and the assets acquired and liabilities assumed as of the acquisition date which were determined by management which used the assistance of an outside independent appraisal evaluation and the purchase price allocation of the acquired business:
|  | US dollars |
|  | September 13, |
(in thousands) |  | 2018 |
Cash paid |  |  | 75,700 |
Consideration paid by issuance of treasury stock (1) |  |  | 12,038 |
Amount to be received as purchase price adjustment (5) |  |  | (10,800 | )
Total acquisition price |  |  | 76,938 |
Fair value of previous investment in acquired companies (4) |  |  | 24,734 |
Obligation to purchase non-controlling interests |  |  | 16,144 |
Recognized amounts of identifiable assets acquired and liabilities assumed: |  |  |  |
Cash and cash equivalents |  |  | 6,731 |
Working capital (excluding cash and cash equivalents and deferred revenues) |  |  | 34,576 |
Intangible assets, net (2) |  |  | 38,583 |
Property and equipment, net |  |  | 11,014 |
Liability for employee rights upon retirement |  |  | (1,337 | )
Deferred income taxes |  |  | 763 |
Other non-current assets |  |  | 2,132 |
Deferred revenues (including current portion) |  |  | (34,048 | )
Net assets acquired |  |  | 58,414 |
Goodwill (3) |  |  | 59,402 |
| (1) | Based on 373,489 shares of common stock of the Company at September 13, 2018.
| (2) | The fair value estimate of identifiable intangible assets were determined using the “income approach “, which is a valuation technique that estimates the fair value of an asset based on market participants’ expectations of the cash flows an asset would generate over its remaining useful life.
| (3) | As part of the purchase price allocation for the acquisition, the Company recorded goodwill in the amount of $59.4 million. Goodwill reflects the value or premium of the acquisition price in excess of the fair values assigned to specific tangible and intangible assets. Goodwill has an indefinite useful life and therefore is not amortized as an expense (the goodwill balance is not deductible for income tax purposes), but is reviewed annually (or more, in certain circumstances) for impairment of its fair value to the Company. The purchase price intrinsically recognizes the benefits of the broadened depth of new markets and management team and is primarily attributable to expected synergies.
| (4) | Upon obtaining control over Road Track, the Company previous holdings (50%) in certain entities jointly held by the Company and Road Track which were accounted for until that date by the equity method, was remeasured at its fair value and a remeasurement gain in an amount of $14.7 million was recorded.
| (5) | The amount of consideration was adjusted based on fiscal 2018 results of Road Track business. Such amount was determined to be paid back to the company in Iturans Shares (300,472 shares out of 373,489 shares that we reissued as part of the consideration). As the purchase price adjustment was settled by receipt of the company's shares issued to the sellers, the amount to be received was presented as a deduction from equity. During April 2019 the sellers has transferred the shares back to the company.
Schedule of Pro Forma Information | The following table provides pro forma information as if the Road Track combinations had occurred on January 1, 2017:
|  | US dollars |
|  | Year ended December 31, |
(in thousands) |  | 2018 (Unaudited) |  |  | 2017 (Unaudited) |
Net revenue from Telematics services |  |  | 234,871 |  |  |  | 236,957 |
Net revenue from Telematics products |  |  | 111,146 |  |  |  | 130,825 |
Net income attributable to the Company |  |  | 51,609 |  |  |  | 47,138 |
Basic and diluted earnings per share attributable to Company’s stockholders based on attributing of shares in the acquisition |  |  | 2.42 |  |  |  | 2.21

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