The transaction is projected to close during the second half of 2021, subject to conditions and customary approvals
Orbcomm, a New Jersey-based provider of Internet of Things (IoT) technology for logistics companies, has announced that it has agreed to be purchased by GI Partners- an investment company in a transaction that values the firm at USD 1.1 billion, inclusive of net debt.
According to an official statement by Orbcomm, San Francisco-headquartered company -GI Partners is expected to pay USD 11.50 in cash for each outstanding stake of Orbcomm’s common share. This represents a 52% premium to the former’s recent closing price.
Reports estimate that the cash aspect is equivalent to nearly USD 909 million. Orbcomm claims that the funding will support its workings in the industrial IoT industry, driving growth and supporting flexibility.
Marc Eisenberg, CEO of Orbcomm, was reportedly quoted stating that the latest funding will add value to the company’s stockholders, showcasing the commitment and work of employees. The alliance with GI Partner will offer an opportunity to advance Orbcomm’s long-term growth plan. Marc further mentioned that the company aims at expanding its market share in the industrial Internet of Things niche as a privately-held entity.
For the record, board of directors of Orbcomm approved the transaction and recommended shareholders vote in favor of the upcoming meeting. The transaction is projected to close during the second half of 2021, subject to conditions and customary approvals.
As per reports, Raymond James and PJT Partners will work as Orbcomm’s financial advisers, with Milbank LLP as the legal counsel. Evercore is performing as the financial supporter to GI Partners, while Lewis & Bockius LLP and Simpson Thacher & Bartlett LLP, and Morgan act as the legal advisors.