ORBCOMM Announces Completion of Acquisition by GI Partners

Rhea-AI Summary

ORBCOMM Inc. has completed an all-cash acquisition by GI Partners, valuing the company at approximately $1.1 billion. Each ORBCOMM shareholder will receive $11.50 per share, reflecting a premium of around 52% over the stock's last closing price. The acquisition, approved by shareholders, allows ORBCOMM to operate as a private entity, enabling greater flexibility for growth and innovation in the industrial Internet of Things (IoT) sector. ORBCOMM aims to enhance operations and enter new markets post-acquisition.

Positive

• Acquisition value of approximately $1.1 billion allows for significant capital influx.
• Shareholders receive $11.50 per share, a 52% premium, reflecting strong investor confidence.
• Increased operational flexibility as a private company will facilitate accelerated growth and innovation.

Negative

• Transition to private ownership may limit public investor engagement.
• Loss of Nasdaq listing could reduce market visibility and trading volume.

Transaction well-positions Company to continue driving innovation and long-term strategic growth in the industrial IoT

ROCHELLE PARK, N.J., Sept. 01, 2021 (GLOBE NEWSWIRE) -- ORBCOMM Inc., a global provider of Internet of Things (IoT) solutions, today announced the completion of its acquisition by GI Partners, a leading US-based private investment management firm, in an all-cash transaction that values ORBCOMM at approximately $1.1 billion, including net debt.

Under the terms of the transaction, which was announced on April 8, 2021, ORBCOMM stockholders will receive $11.50 in cash per outstanding share of common stock, representing a premium of approximately 52% to ORBCOMM’s closing share price on April 7th and a 50% premium over the 90-day volume-weighted average share price through that date. The transaction was approved by ORBCOMM stockholders on July 8, 2021. Effective today, ORBCOMM is a privately held company, and its common stock is no longer listed on the Nasdaq Stock Market.

“ORBCOMM’s partnership with GI Partners represents an exciting new chapter for the Company’s continued leadership in the industrial IoT,” said Marc Eisenberg, ORBCOMM’s Chief Executive Officer. “As a privately held company, we will have the resources and flexibility to accelerate growth by enhancing our operations, fast-tracking innovation, entering new markets, and focusing on customer success.”

“ORBCOMM’s best-in-class IoT solutions are integral to some of the world’s largest enterprises, and we are confident that our strategic investments will build on the Company’s impressive market position and help them achieve the pivotal next phase of growth,” said Mark Prybutok, Managing Director of GI Partners. “GI Partners and ORBCOMM are aligned on our go-forward strategy, and we will hit the ground running with Marc and the ORBCOMM team on the significant value-creation opportunities we have identified to drive growth and innovation in high-potential IoT markets,” said Brendan Scollans, Managing Director of GI Partners.

PJT Partners and Raymond James served as financial advisors to ORBCOMM, and Milbank LLP served as legal counsel. Evercore served as financial advisor to GI Partners, and Simpson Thacher & Bartlett LLP and Morgan, Lewis & Bockius LLP served as legal counsel.

About ORBCOMM Inc.
ORBCOMM is a global leader and innovator in the industrial Internet of Things, providing solutions that connect businesses to their assets to deliver increased visibility and operational efficiency. The company offers a broad set of asset monitoring and control solutions, including seamless satellite and cellular connectivity, unique hardware and powerful applications, all backed by end-to-end customer support, from installation to deployment to customer care. ORBCOMM has a diverse customer base including premier OEMs, solutions customers and channel partners spanning transportation, supply chain, warehousing and inventory, heavy equipment, maritime, natural resources, and government. For more information, visit www.orbcomm.com. You can also connect with ORBCOMM at https://blog.orbcomm.com, on Twitter at @ORBCOMM_Inc, at https://www.linkedin.com/company/orbcomm or https://www.youtube.com/c/ORBCOMM_Inc.

About GI Partners
Founded in 2001, GI Partners is a private investment firm based in San Francisco, California. The firm has raised over $28 billion in capital from leading institutional investors around the world to invest in its private equity, real estate, and data infrastructure strategies. The private equity team invests primarily in companies in the Healthcare, IT Infrastructure, Services, and Software sectors. The real estate team invests across a broad range of platforms and strategies. The data infrastructure team invests primarily in hard asset infrastructure businesses underpinning the digital economy. For more information on GI Partners and its portfolio, please visit www.gipartners.com.

ORBCOMM Contacts
For Corporate Relations:	For Trade Media:
Michelle Ferris	Sue Rutherford
Senior Director of Corporate Communications	VP of Marketing
+1 703.462.3894	+1 613.290.1169
ferris.michelle@orbcomm.com	rutherford.sue@orbcomm.com
investorrelations@orbcomm.com	mediarelations@orbcomm.com
GI Partners Media Contacts
Chris Tofalli	Gretchen Robinson
Chris Tofalli Public Relations LLC	GI Partners
Chris@tofallipr.com	grobinson@gipartners.com

FAQ

What is the acquisition value of ORBCOMM by GI Partners?

The acquisition values ORBCOMM at approximately $1.1 billion.

What premium did ORBCOMM shareholders receive from the acquisition?

Shareholders will receive $11.50 per share, representing a premium of about 52%.

When was the acquisition of ORBCOMM completed?

The acquisition was completed on September 1, 2021.

What does the acquisition mean for ORBCOMM's future?

As a privately held company, ORBCOMM will have more resources and flexibility to enhance operations and drive innovation in the industrial IoT market.