Pointer's Israeli subsidiary acquires 51% in CAR2GO

22 May 2009

Israel-based Pointer Telocation subsidiary Shagrir has entered into an agreement to invest in CAR2GO, an urban car-sharing company.

According to terms and conditions, CAR2GO will issue 51% of its share capital to Shagrir, who will grant to the company a shareholder's loan of up to NIS 6 million. CAR2GO's founder will continue to be employed contributing to the development of its business.

Considered to be an alternative for car ownership or taxi services, car sharing systems are rapidly spreading in urban areas worldwide.

"The investment in this essential service is based on our strategy of increasing our service and subscribers base," said Pointer's chairman, Yossi Ben-Shalom, adding that Pointer will continue to seek interesting investment opportunities with the aim of increasing its business both in Israel and abroad.

CAR2GO supplies cars by the hour, anytime, anywhere, with registered members having access to a fleet of diverse vehicles by swiping their smart card on the windshield and driving away. At the end of the reservation period, the car is returned to its reserved parking space.