Expands end-to-end solutions offering for mobile asset applications, distribution into government sector and new geographic regions
Rochelle Park, NJ, March 14, 2013 - 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.
About ORBCOMM Inc.
ORBCOMM is a leading global satellite data communications company, specializing in Machine-to- Machine (M2M) communications and solutions. Its customers include Caterpillar Inc., Doosan Infracore America, Hitachi Construction Machinery, Hyundai Heavy Industries, Asset Intelligence (a division of I.D. Systems, Inc.), Komatsu Ltd., Manitowoc Crane Companies, Inc., and Volvo Construction
Equipment among other industry leaders. By means of a global network of low-earth orbit (LEO) satellites and accompanying ground infrastructure, ORBCOMM's 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 based products are installed on trucks, containers, marine vessels, locomotives, backhoes, pipelines, oil wells, utility meters, storage tanks and other assets.
ORBCOMM is an innovator and leading provider of tracking, monitoring and control services for the refrigerated transport market. Under its ReeferTrak®, GenTrak™, and CargoWatch™ brands, the company provides customers with the ability to proactively monitor, manage and remotely control their refrigerated transport assets. Additionally, ORBCOMM provides Automated 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 network control center in Dulles, Virginia. For more information, visit www.orbcomm.com.
Certain statements discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements generally relate to ORBCOMM's plans, objectives and expectations for future events and include statements about ORBCOMM's expectations, beliefs, plans, objectives, intentions, assumptions and other statements that are not historical facts. Such forward-looking statements, including those concerning the ORBCOMM's expectations, are subject to known and unknown risks and uncertainties, which could cause actual results to differ materially from the results, projected, expected or implied by the forward- looking statements, some of which are beyond ORBCOMM's control, that may cause ORBCOMM's actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. In addition, specific consideration should be given to various factors described in Part I, Item 1A. "Risk Factors" and Part II, Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations," and elsewhere in ORBCOMM's Annual Report on Form 10-K for the year ended December 31, 2011, and other documents, on file with the Securities and Exchange Commission. ORBCOMM undertakes no obligation to publicly revise any forward-looking statements or cautionary factors, except as required by law.
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