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ORBCOMM Inc. (Nasdaq: ORBC), a global satellite data communications company specializing in Machine-to-Machine (M2M) communications and solutions, today announced that it has entered into an agreement with System Planning Corporation to acquire substantially all of the assets of its GlobalTrak division. GlobalTrak is an information services company that utilizes satellite and cellular communications networks, sensors and proprietary software platforms to provide real-time situational awareness and intelligence to improve logistics and security processes and operations on a global basis. GlobalTrak’s customer base includes military, international, government, and commercial customers.
The acquisition of the GlobalTrak business supports ORBCOMM’s growth strategy of expanding its end-to-end solutions portfolio into key vertical markets and new geographic regions. GlobalTrak sells into key markets such as the government sector and operates in the Middle East, Asia and South America. Combining GlobalTrak technology with ORBCOMM’s existing capabilities will create a suite of transportation related product offerings across the expanded global distribution network.
“The addition of GlobalTrak’s advanced asset monitoring solution and its top-tier customer base adds to ORBCOMM’s diverse technologies and expertise serving the transportation market” said Marc Eisenberg, ORBCOMM’s Chief Executive Officer. “It is an important next step in the evolution of ORBCOMM’s business as an end-to-end solutions provider, and brings with it significant differentiated technology solutions, such as container tracking, as well as new and important distribution channels. We look forward to welcoming GlobalTrak’s customers and employees to ORBCOMM during this exciting time in our company’s history.”
“Joining with ORBCOMM positions GlobalTrak for long-term growth and creates a leading force in telematics through a powerful combination of innovation, technology and worldwide coverage,” said Richard Meyers, President and Chief Executive Officer of GlobalTrak. “GlobalTrak’s customers will benefit from ORBCOMM’s proven experience in mobile data communications and leading-edge transportation industry solutions.”
The transaction is expected to close in the second quarter of 2013, subject to customary closing conditions. ORBCOMM expects to realize benefits and synergies from the combined businesses in service delivery, device manufacturing and other operating costs. GlobalTrak will operate out of ORBCOMM’s Dulles, VA facility.