Orbcomm, a New Jersey-based machine-to-machine network solutions provider announced a public offering designed to raise $72 million toward the company’s planned $130 million acquisition of SkyWave Mobile Communications.
Canada-based SkyWave provides M2M services using the Inmarsat global L-band satellite network; the company has some 250,000 subscriber units, 400 channel partners and an estimated $60 million in annual revenue.
“We expect the combination of SkyWave and Orbcomm to deliver significant value for both our shareholders and customers,” Orbcomm CEO Marc Eisenberg said.
“By combining our complementary products, distribution channels and broad geographic footprints – with support from Inmarsat – we are adding significant scale to our business,” he said. “Our customers will benefit from access to one of the industry’s broadest set of complete solutions, global regulatory authorizations and satellite-based connectivity options. We also expect this added scale to create sustainable long-term shareholder value.”
Inmarsat owns and operates a global satellite network used for maritime, enterprise, government and aviation communications.
The planned acquisition has been approved by the board of directors of both companies and is poised for closing in early 2015.
With the SkyWave acquisition, Orbcomm will get a foothold in Eastern European and Asian markets.
“Orbcomm shares SkyWave’s commitment to customers and passion for innovation, making it the perfect partner for our customers and employees,” Pui-Ling Chan, SkyWave CEO, said.
“We are excited about the combination of our two organizations, which will create a leading force in the industry to provide more products, applications and tool sets aimed at the ‘Internet of Things,’” he said. “Together, we have the capabilities to serve customers of all sizes, locations or sectors with one of the most comprehensive and competitive portfolios, as we lead the M2M industry to a new level.”
