ORBCOMM Inc. (ORBC), a leading global provider of Machine-to-Machine (M2M) solutions, today announced that it has completed the acquisition of SkyWave Mobile Communications (SkyWave), the largest M2M service provider on the Inmarsat (IMASF) (LSE:ISAT.L) global L-band satellite network, on January 1. Based in Ottawa, Canada, SkyWave adds more than 250,000 subscribers, 400 channel partners, annualized revenues of over $60 million and Adjusted EBITDA of over $12 million.
The acquisition of SkyWave furthers ORBCOMMs strategy to provide the most complete set of options and capabilities in the industry, while adding multiple synergies to strengthen its M2M solutions portfolio. With the addition of SkyWave, ORBCOMM now has one of the largest combined engineering teams in the M2M industry and gains significant economies of scale in operations and manufacturing. SkyWaves robust distribution channels in South America, Asia and the Middle East, along with Inmarsats support, provide ORBCOMM with even broader global distribution. ORBCOMM gains access to new geographies in Eastern Europe and Asia while adding diverse vertical markets such as security and marine. The addition of SkyWaves higher bandwidth, low-latency satellite products and services that leverage the IsatDataPro (IDP) technology, which is now jointly owned by ORBCOMM and Inmarsat, also further expands the breadth of ORBCOMMs solutions portfolio.
This transformative acquisition creates the largest space-based global M2M company with unparalleled capabilities, established go-to-market channels and global network coverage, said Marc Eisenberg, ORBCOMMs Chief Executive Officer. With our expanded scope and scale, we are well-positioned to provide the industrys most diverse portfolio of M2M solutions and connectivity options that leverage both the ORBCOMM and Inmarsat networks.
Raymond James served as financial advisor to ORBCOMM on this transaction, and William Blair & Company served as financial advisor to SkyWave. For additional information on this transaction, please refer to ORBCOMMs SEC (SCUR) filing on Form 8-K regarding this transaction.
About ORBCOMM Inc.
ORBCOMM is a global provider of Machine-to-Machine (M2M) solutions. Its customers include Caterpillar Inc., Doosan Infracore America, Hitachi Construction Machinery, Hyundai Heavy Industries, I.D. Systems, Inc., Komatsu Ltd., Cartrack (Pty.) Ltd., and Volvo Construction Equipment, among other industry leaders. By means of a global network of low-earth orbit (LEO) satellites and accompanying ground infrastructure as well as our Tier One cellular partners, ORBCOMMs low-cost and reliable two-way data communication services track, monitor and control mobile and fixed assets in our core markets: commercial transportation; heavy equipment; industrial fixed assets; marine; and homeland security.
ORBCOMM is an innovator and leading provider of tracking, monitoring and control services for the transportation market. Under its ReeferTrak®, GenTrakTM, GlobalTrak®, and CargoWatch® brands, the company provides customers with the ability to proactively monitor, manage and remotely control their cold chain and dry transport assets. Additionally, ORBCOMM provides Automatic Identification System (AIS) data services for vessel tracking and to improve maritime safety to government and commercial customers worldwide. ORBCOMM is headquartered in Rochelle Park, New Jersey and has its Innovation & Network Control Center in Sterling, Virginia. For more information, visit www.orbcomm.com.
