A scheme for multitarget identification and localization using bistatic MIMO radar systems is proposed. Multitarget can be distinguished by Capon method, as well as the targets angles with respect to transmitter and receiver can be synthesized using the received signals. Thus, the locations of the multiple targets are obtained and spatial synchronization problem in traditional bistatic radars is avoided. The maximum number of targets that can be uniquely identified by proposed method is also analyzed. It is indicated that the product of the numbers of receive and transmit elements minus-one targets can be identified by exploiting the fluctuating of the radar cross section (RCS) of the targets. Cramer-Rao bounds (CRB) are derived to obtain more insights of this scheme. Simulation results demonstrate the performances of the proposed method using Swerling II target model in various scenarios.