The deal will enable ORBCOMM to become a privately-held company
ORBCOMM, a US-based provider of Internet of Things (IoT) solutions, has agreed to be acquired by private investment firm GI Partners for about $1.1bn in an all-cash deal.
The consideration includes ORBCOMM’s net debt.
As per the terms of the deal, ORBCOMM’s shareholders will be paid $11.50 in cash per share.
GI Partners managing director Mark Prybutok said: “ORBCOMM has a long history of innovation, providing mission-critical services to customers across the global logistics landscape and a broad range of other industries.
“We are excited to work with the ORBCOMM team to take the business forward as IoT use cases continue to evolve and grow.”
Based in New Jersey, the IoT company offers solutions that connect businesses to their assets to enable enhanced visibility and operational efficiency.
The IoT company provides asset monitoring and control solutions that include satellite and cellular connectivity and hardware and powerful applications.
For the full year 2020, the company registered revenues of $248.5m.
GI Partners’ investment is expected to support the company’s momentum in the industrial IoT, implementation of its long-term strategic plan, and its global expansion.
The deal will also take ORBCOMM private. Currently, it is a publicly-listed company, which trades on Nasdaq.
ORBCOMM CEO Marc Eisenberg said: “This transaction will provide immediate and substantial value to ORBCOMM stockholders, reflecting the tremendous commitment and work of our employees and stakeholders. The partnership with GI Partners will provide us the opportunity to rapidly advance our long-term strategy.
“GI Partners has an established track record of working with companies to accelerate growth, and we look forward to continuing to drive innovation, providing world-class service to our global customers and expanding our market share in the industrial IoT as a privately held company.”
The deal, which is subject to ORBCOMM stockholders’ approval, regulatory approvals, and other customary closing conditions, is expected to close in the latter half of this year.
Earlier this week, IWX Motor Freight selected ORBCOMM’s cold chain telematics solutions for tracking, monitoring, and controlling its refrigerated trailers. IWX Motor Freight is a Missouri-based freight shipping and trucking company.