ORBCOMM To Acquire MobileNet, Inc.
Expands ORBCOMM's end-to-end solutions offering and further solidifies leadership in the global heavy equipment marketplace
ROCHELLE PARK, N.J.--(BUSINESS WIRE)-- ORBCOMM Inc. (NAS: 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 to acquire substantially all of the assets of MobileNet, Inc. (MobileNet), a leader of satellite and cellular-based telematics solutions for monitoring heavy equipment and assets that support the rail industry as well as being a long-time ORBCOMM value-added reseller.
The acquisition of the MobileNet business supports ORBCOMM's growth strategy of expanding its end-to-end solutions portfolio in key vertical markets. Integrating MobileNet's unique products and services will allow ORBCOMM to directly address opportunities within the heavy equipment industry through Original Equipment Manufacturers (OEM's), dealers and fleet owners.
Through MobileNet's flexible, proven telematics platform, ORBCOMM can offer the industry a complete fleet management solution. MobileNet's advanced web applications, which utilize ORBCOMM's global network connectivity, will provide customers access to precise, near-real time equipment data on demand, including location, engine and production hours, mileage, fuel usage, maintenance alerts and asset security. Leveraging MobileNet's turnkey offering 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 telematics solutions in the field.
"With MobileNet's strong customer base and proven success as a solutions provider in this market, we believe the MobileNet product offering fits perfectly within our strategic initiative of strengthening our end-to-end solutions capabilities in key areas," said Marc Eisenberg, ORBCOMM's Chief Executive Officer. "We have worked with the MobileNet team for many years and look forward to having them join ORBCOMM."
"Building on MobileNet's advanced technology platform and ORBCOMM's extensive global reach, we welcome the dynamic opportunities for growth, innovation and expansion the acquisition offers MobileNet and our customers," said William Purdie, MobileNet's Founder and President. "We strongly believe that our customers will continue to benefit from MobileNet's high level of service and reliability while gaining new value from ORBCOMM's breadth of global data communications services, engineering and customer support and enhanced distribution channels."
MobileNet's current customers include Doosan North America, a world-class construction equipment company, and leading rail companies Union Pacific, CSX and BNSF.
The transaction is expected to close within 30 days, subject to customary closing conditions. ORBCOMM was advised by Near Earth LLC on the transaction.
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.
About MobileNet Inc.
MobileNet was founded in 1996 to develop and market custom mobile data solutions for the heavy equipment and railroad industries. As a pioneer in the remote monitoring of assets, MobileNet was among the first to develop satellite monitoring for construction equipment with its TrakPak line of remote monitors. MobileNet's growth and reputation are attributable to its practice of continually providing innovative products and valued services to its customers. For more information, visit www.mobile-net.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.
KEYWORDS: United States North America Georgia New Jersey
The article ORBCOMM To Acquire MobileNet, Inc. originally appeared on Fool.com.
Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.