Acquisition Secures Intellectual Property Rights and Supply Chain for Award Winning Satellite Products and Paves Way for Development of Further Innovative Consumer and Enterprise Solutions
MILPITAS, Calif., Dec. 21, 2009 (GLOBE NEWSWIRE) — Globalstar, Inc. (Nasdaq:GSAT), a leading provider of mobile satellite voice and data services to businesses, governments and consumers, today announced that it and its wholly owned subsidiary, Spot LLC, have acquired substantially all of the assets of Axonn, L.L.C. (Axonn). Axonn is a leading developer and manufacturer of high quality and affordable satellite GPS asset-tracking and messaging products including Globalstar’s award-winning consumer retail device, the SPOT Satellite GPS Messenger(TM). Axonn also designs and markets enterprise products which utilize the highly reliable Globalstar Simplex data network, including the AXTracker(TM) and SMARTONE asset-tracking solutions.
“This agreement is significant for it will effectively secure the critical long-term supply chain and associated intellectual property rights and technical design for the SPOT Satellite GPS Messenger retail consumer product as well as a number of Simplex data machine-to-machine (M2M) enterprise solutions,” said Peter Dalton, Chief Executive Officer, Globalstar, Inc. “With the economics of this acquisition, we expect to increase our equipment margin for the SPOT Satellite GPS Messenger by approximately 100 percent. We also expect that contracting directly with Simplex device manufacturers and working with Axonn’s talented team of R&D, design and contract manufacturing personnel will enable Globalstar to deliver future innovative products, already planned for introduction, in a much more cost effective and timely manner.”
Axonn is the designer and manufacturer of the STX2 Simplex data transmitter which is the world’s smallest industrial-use satellite Simplex transmitter. The STX2 provides developers of asset tracking, data monitoring and messaging solutions with a small but affordable way to integrate Globalstar satellite data network connectivity into their product solutions. The STX2 is an integral piece of every current M2M Simplex data device that utilizes the Globalstar network.
Mr. Dalton continued, “Axonn’s broad-ranging intellectual property and engineering expertise coupled with Globalstar’s network capability provides us with the ability to offer developers, on an open-source basis, the technologies needed to integrate SPOT’s proven messaging technology and global tracking into their M2M products. This agreement also provides Globalstar with the ability to directly deliver customized and affordable Simplex data hardware solutions to customers.”
Globalstar and Spot LLC acquired certain assets and assumed certain liabilities of Axonn in exchange for $1.5 million in cash, subject to a working capital adjustment, $5.5 million in shares of the Company’s voting common stock and up to an additional $11 million for earnout payments based on sales of existing and new products.
About Globalstar, Inc.
With over 375,000 subscribers, Globalstar is the world’s largest provider of mobile satellite voice and data services. Globalstar offers these services to commercial and recreational users in more than 120 countries around the world. The Company’s products include mobile and fixed satellite telephones, simplex and duplex satellite data modems and flexible service packages. Many land based and maritime industries benefit from Globalstar with increased productivity from remote areas beyond cellular and landline service. Global customer segments include: oil and gas, government, mining, forestry, commercial fishing, utilities, military, transportation, heavy construction, emergency preparedness, and business continuity as well as individual recreational users. Globalstar data solutions are ideal for various asset and personal tracking, data monitoring and SCADA applications.
For more information regarding Globalstar, please visit Globalstar’s web site at www.globalstar.com
About Axonn, LLC
Headquartered in Covington, Louisiana, Axonn LLC has been committed to the research, development and commercialization of satellite and radio frequency-based hardware for the tracking, monitoring and management of fixed and mobile remote assets since 1985. As the exclusive provider of hardware for the Globalstar Simplex Data Network, there are currently over 150,000 Axonn products in operation worldwide by industrial, commercial and government customers. Our focus is to provide cost-efficient, low power, ultra-reliable, secure monitoring devices that help solve a variety of problems in a variety of markets.
Axonn’s commitment has enabled the cost-effective replacement of wire and cable in industrial, commercial and residential applications worldwide and has brought connectivity to previously inaccessible data such as mobile asset tracking.
Safe Harbor Language for Globalstar Releases
This press release contains certain statements such as, “With the economics of this acquisition, we expect to increase our equipment margin for the SPOT Satellite GPS Messenger by approximately 100 percent,” and “We also expect that contracting directly with Simplex device manufacturers and working with Axonn’s talented team of R&D, design and contract manufacturing personnel will enable Globalstar to deliver future innovative products, already planned for introduction, in a much more cost effective and timely manner,” that are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, including demand for our products and services, including commercial acceptance of our new Simplex products, including the SPOT Satellite GPS Messenger; problems relating to the ground-based facilities operated by us or by independent gateway operators; the pace and effects of industry consolidation; changes in technology; our ability to continue to attract and retain qualified personnel; worldwide economic, geopolitical and business conditions and risks associated with doing business on a global basis; and legal, regulatory, and tax developments, including changes in domestic and international government regulation.
Any forward-looking statements made in this press release speak as of the date made and are not guarantees of future performance. Actual results or developments may differ materially from the expectations expressed or implied in the forward-looking statements, and we undertake no obligation to update any such statements. Additional information on factors that could influence our financial results is included in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
CONTACT: Globalstar, Inc.
Dean Hirasawa
(408) 933-4006
Dean.hirasawa@globalstar.com
Skyya Communications
Susan Donahue
(646) 454-9378
Susan.donahue@skyya.com
