Business Divestiture

6 Months Ended

Jun. 30, 2021

Discontinued Operations and Disposal Groups [Abstract]

Sale of Ctrack South Africa Operations

On February 24, 2021, the Company entered into a Share Purchase Agreement (the “Purchase Agreement”) with an affiliate of Convergence Partners (“Convergence”), an investment management firm in South Africa, to sell the Company’s Ctrack business operations in Africa, Pakistan and the Middle East (together, “Ctrack South Africa”), in an all-cash transaction for 528.9 million South African Rand (“ZAR”) (approximately $36.6 million United States Dollars (“USD”)). The Purchase Agreement provides for an adjustment to the purchase price based on a normalized level of net working capital. The final net consideration is subject to working capital adjustments that are expected to be agreed upon and finalized with Convergence no later than 35 business days after completion of the sale. The consummation of the sale was subject to a number of customary conditions precedent. Additionally, the consummation of the sale was subject to Convergence closing an investment fund.

On June 30, 2021, the Company entered into an Addendum to the Purchase Agreement with Convergence. Pursuant to the Addendum, the Company and Convergence have agreed to extend the date by which certain of the closing conditions must be fulfilled or otherwise waived and set the closing date of the transaction to be on or before July 30, 2021.

Effective upon the execution of the Purchase Agreement, the assets and liabilities of the Ctrack South Africa entities that are subject to the sale, meet the criteria for classification of held for sale (“HFS”), since the sale of the Ctrack South Africa operations under the Purchase Agreement is subject only to usual and customary closing conditions, and the sale is expected to

be completed in less than one year from the date of the Purchase Agreement. The following table presents assets and liabilities of Ctrack South Africa which are classified as HFS as of June 30, 2021 (in thousands):


	Balance as of June 30, 2021
Assets:
Cash and cash equivalents	$	5,849
Accounts receivable, net	3,640
Inventory	3,650
Prepaid expenses and other	798
Property, plant and equipment, net	4,197
Rental assets, net	2,392
Intangible assets, net	11,010
Goodwill	10,914


Total assets held for sale	$	42,450

Liabilities:
Accounts payable	$	5,302
Accrued expenses and other liabilities	1,294
Deferred tax liabilities, net	3,717
Other long-term liabilities	819
Total liabilities related to assets held for sale	$	11,132