GI Partners to acquire ORBCOMM for $1.1 billion
ORBCOMM has entered into a definitive agreement to be acquired by GI Partners, a US-based investor in digital infrastructure, for an all-cash transaction worth approximately $1.1 billion.
Under the terms of the agreement, ORBCOMM, a global IoT solutions provider, will see its shareholders receive $11.50 per outstanding share of common stock upon one the deal closes. This represents a premium of approximately 52% to ORBCOMM’s closing share price as of 7 April 2021.
“This transaction will provide immediate and substantial value to ORBCOMM stockholders, reflecting the tremendous commitment and work of our employees and stakeholders. The partnership with GI Partners will provide us the opportunity to rapidly advance our long-term strategy,” said Marc Eisenberg (pictured), chief executive officer at ORBCOMM.
“GI Partners has an established track record of working with companies to accelerate growth, and we look forward to continuing to drive innovation, providing world-class service to our global customers and expanding our market share in the industrial IoT as a privately held company.”
The proceeds of the deal with GI Partners will be used by ORBCOMM to support its growth in industrial IoT to increase its investment in sales, marketing and technology innovation, all of which will facilitate growth, execute on ORBCOMM’s long-term strategic plan and global market expansion, and deliver added flexibility.
“ORBCOMM has a long history of innovation, providing mission-critical services to customers across the global logistics landscape and a broad range of other industries,” said Mark Prybutok, managing director of GI Partners.
“We are excited to work with the ORBCOMM team to take the business forward as IoT use cases continue to evolve and grow.”
The transaction has been unanimously approved by ORBCOMM’s Board of Directors with a stockholders vote in to be held following the filing of a definitive proxy statement with the US Securities and Exchange Commission.
The deal is expected to close in the second half of 2021following customary closing conditions, including the aforementioned stockholder vote and regulatory approvals.