Going with its expansion plans and to position itself high in the satellite data communications market, Orbcomm Inc. has decided to acquire PAR's subsidiary PAR Logistics Management Systems or PAR LMS for around $6 million in cash and common stock.
Orbcomm officials confirmed that they have signed a definitive agreement with hospitality technology and services PAR Technology Corp. and this deal would include potential of up to $4 million, based on achieving specific sales targets.
The company officials said that this new agreement will enhance their company’s revenue growth and is expected to be accretive to adjusted EBITDA by the end of 2012. PAR LMS is a provider of advanced solutions for monitoring transport assets and cargo in the transportation and distribution industries. The transaction is expected to close in mid-January 2012.
In addition to the revenue, this deal is expected to increase Orbcomm's customer base and strengthen its foundation of value-added services. The company looks forward to offer advanced products in the fast-growing telematics industry.
ORBCOMM (News - Alert) is a leading provider of global satellite and cellular data communications solutions for asset tracking, management, and remote control. According to the company, their global network and unique management tools enable delivery of small quantities of information to and from virtually any place in the world on a near real-time basis—simply and affordably.
Recently, ORBCOMM Inc. and Space Exploration Technologies scheduled launches for ORBCOMM's second generation (OG2) satellites.
According to a press release, the updated plan includes introducing the first OG2 prototype satellite on the first Cargo Re-supply Services (CRS) mission in mid-2012, followed closely by an additional launch of two OG2 satellites into a high inclination orbit as a secondary payload in late 2012.
SpaceX (News - Alert) plans to launch eight to twelve OG2 satellites, and the remainder of the constellation of 18 OG2 satellites is expected to be launched in 2014. All launches are expected to be on Falcon 9 rockets.
Jyothi Shanbhag is a contributing editor for TMCnet. To read more of Jyothi's articles, please visit her columnist page.
Edited by Jennifer Russell