Market Overview

ORBCOMM Completes Acquisition of Both GlobalTrak and MobileNet

ORBCOMM (Nasdaq: ORBC), a global satellite data communications company specializing in the Machine-to-Machine (M2M) marketplace, today announced that it has completed the acquisition of substantially all of the assets of the GlobalTrak division of System Planning Corporation (GlobalTrak) and MobileNet, Inc. (MobileNet). The GlobalTrak and MobileNet acquisitions accelerate ORBCOMM's growth strategy of expanding its end-to-end solutions portfolio into key vertical markets and geographic regions.

GlobalTrak is an information services company that utilizes networks, sensors and proprietary software platforms to provide near-real-time situational awareness and intelligence to improve logistics and security processes and operations on a global basis. GlobalTrak gives ORBCOMM access to a customer base that includes military, international, government, and commercial customers as well as expanded reach in growing regions, such as the Middle East, Asia and South America. Combining GlobalTrak's advanced products including container and vehicle technology with ORBCOMM's existing capabilities will create a suite of transportation-related product offerings across the expanded global distribution network.

A long-time ORBCOMM value-added reseller, MobileNet is a provider of telematics solutions to the heavy equipment and rail support industries. The acquisition enables ORBCOMM to offer MobileNet's complete fleet management solution directly to Original Equipment Manufacturers, dealers and fleet owners. Leveraging MobileNet's turn-key telematics platform will further enhance ORBCOMM's leadership position in services to the global heavy equipment sector by providing customers significant operating advantages as well as savings in development costs and faster time to market for implementing solutions in the field.

“The completion of the GlobalTrak and MobileNet acquisitions is a significant step forward in building our diverse portfolio of end-to-end solutions and enables ORBCOMM to execute on our long-term vision of expanding our integrated M2M services into new industrial and geographic markets,” said Marc Eisenberg, ORBCOMM's Chief Executive Officer. “Our combined strengths will allow us to broaden our product and service capabilities and leverage synergies across common distribution channels, while providing value-driven, high-performance solutions to our customers.”

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 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 network control center in Dulles, Virginia. For more information, visit www.orbcomm.com.

Forward-Looking Statements

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, 2012, 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.

Posted-In: News M&A

 

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