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Business Divestiture | 12 Months Ended
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Dec. 31, 2022
Discontinued Operations and Disposal Groups [Abstract] |
Business Divestiture | Business Divestiture Sale of Ctrack South Africa Operations On July 30, 2021, the Company completed the sale of Ctrack South Africa to an affiliate of Convergence Partners (“Convergence”), an investment management firm in South Africa. Net cash proceeds received were approximately $33.7 million, net o f cash divested of $5.0 million. The Company placed in escrow approximately $3.3 million, which was released to the Company on July 30, 2022. The funds in escrow allowed for Convergence to submit claims that were deemed to be uninsured warranties as defined in the purchase agreement. Such funds in escrow were recorded as restricted cash on the Company’s consolidated balance sheet prior to their release. The transaction was considered a deconsolidation of a subsidiary. Accordingly, upon the sale of Ctrack South Africa, the Company recognized a pre-tax gain of $5.3 million for the year ended December 31, 2021. Such gain was recognized as gain on the sale of Ctrack South Africa in the consolidated statement of operations during the year ended December 31, 2021 The Company also recorded $2.2 million of transaction costs within other income (expense), net, in the consolidated results of operations for the year ended December 31, 2021. The carrying values of the assets and liabilities of Ctrack South Africa sold in the transaction as of July 30, 2021, are summarized below:
(in thousands) |
Assets: |
Cash and cash equivalents | $ | 5,040 |
Accounts receivable, net | 3,505 |
Inventory | 3,821 |
Prepaid expenses and other | 370 |
Property, plant and equipment, net | 4,545 |
Rental assets, net | 2,448 |
Intangible assets, net | 11,278 |
Goodwill | 10,734 |
Total assets | 41,741 |
Accounts payable | 3,961 |
Accrued expenses and other liabilities | 1,107 |
Deferred tax liabilities, net | 3,647 |
Other long-term liabilities | 746 |
Total liabilities | 9,461 |
Net assets | $ | 32,280 |
Total consideration recognized was comprised of the following:
(in thousands) |
Initial purchase consideration received, upon close | $ | 36,566 |
Working capital adjustments (a) | 2,584 |
Total consideration recognized | $ | 39,150 |
(a) $2.2 million was received on October 29, 2021, and the remaining $0.4 million was offset with the Company’s existing accounts payable balance to Convergence. Net gain on sale is comprised of the following:
(in thousands) |
Total consideration recognized | $ | 39,150 |
Less: Book value of net assets sold | 32,280 |
Less: Release of cumulative foreign currency translation adjustments related to Ctrack South Africa | 1,608 |
Net gain on sale | $ | 5,262 |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI https://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=2122178 + Details
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