S&P Global agrees to acquire ORBCOMM's Automatic Identification System business, strengthening its supply chain and maritime offerings

Rhea-AI Summary

S&P Global (NYSE: SPGI) has announced an agreement to acquire ORBCOMM's Automatic Identification System (AIS) data services business, a leading provider of satellite data services for vessel tracking and monitoring. The acquisition will strengthen S&P Global's maritime and supply chain offerings, with the AIS business being integrated into the S&P Global Market Intelligence division.

Additionally, S&P Global will take a strategic equity position in ORBCOMM, forming an alliance to develop differentiated supply chain data and insight offerings. The partnership aims to combine S&P Global's expertise with ORBCOMM's technology in global trade and logistics ecosystems.

The transaction is expected to close during 2025, subject to regulatory approvals. Financial terms were not disclosed.

Positive

• Strategic expansion into maritime tracking and supply chain intelligence
• Access to ORBCOMM's established AIS technology and data services
• Strategic equity position and alliance with ORBCOMM for future innovations
• Enhancement of S&P Global Market Intelligence division's capabilities

Negative

• Financial terms not disclosed, creating uncertainty about investment value
• Regulatory approval requirements could delay closing
• Integration costs and challenges may impact short-term performance

Insights

Financial M&A Analyst

S&P Global's acquisition of ORBCOMM's AIS business strategically enhances maritime data capabilities and strengthens its position in supply chain intelligence.

This acquisition represents a strategic expansion of S&P Global's data and analytics portfolio in the maritime sector. By acquiring ORBCOMM's Automatic Identification System business, S&P gains specialized technology that tracks and monitors vessels globally - valuable intelligence amid ongoing supply chain disruptions.

The integration into S&P's Market Intelligence division creates clear synergistic opportunities. ORBCOMM's satellite and terrestrial vessel tracking technology, developed since 2004, provides proprietary data that complements S&P's existing offerings. This combination enables richer insights for maritime stakeholders navigating increasingly complex global trade environments.

Beyond the outright acquisition, S&P's additional strategic equity position in ORBCOMM and the formation of a strategic alliance demonstrate a deeper commitment to the partnership. This dual approach gives S&P both immediate control of key maritime data assets and a stake in ORBCOMM's future innovations in supply chain visibility.

While financial terms weren't disclosed, this appears to be a targeted bolt-on acquisition rather than a transformative deal. The transaction follows S&P Global's established pattern of acquiring specialized data providers that enhance its core analytics capabilities.

The deal strengthens S&P's competitive positioning in providing alternative data sets crucial for financial markets, commodity traders, and supply chain managers. As global trade faces continued volatility, the enhanced maritime intelligence capabilities should create opportunities for new premium data products and services for S&P Global's client base.

NEW YORK, April 24, 2025 /PRNewswire/ -- S&P Global (NYSE: SPGI) today announced an agreement to acquire the Automatic Identification System (AIS) data services business of ORBCOMM Inc. The AIS business is a leading provider of satellite data services used to track and monitor vessels, enhancing maritime visibility and delivering critical insights that support business intelligence and decision-making for government and commercial clients worldwide.

Since 2004, ORBCOMM's AIS vessel tracking technology has incorporated high-quality, proprietary data with satellite and terrestrial based coverage. Its AIS solutions are utilized for diverse applications such as supply chain visibility, maritime safety, surveillance and security, environmental monitoring, regulatory compliance and more. ORBCOMM's AIS data services will be integrated within the S&P Global Market Intelligence division of S&P Global.  

"With the uncertainties surrounding global markets and supply chains, this strategic acquisition underscores our commitment to investing in differentiated data and solutions that can help our customers navigate the volatility," said Whit McGraw, Head of Risk & Valuations Services at S&P Global Market Intelligence. "ORBCOMM's AIS data services business offers cutting-edge technology and coverage that strengthens our energy transition and maritime supply chain offering, giving us ample opportunity to invest in new product innovations."

S&P Global also announced it has entered into an agreement to take a strategic equity position in ORBCOMM. The two organizations will create a strategic alliance to develop a range of differentiated supply chain data and insight offerings, underscoring its commitment to further investing in this sector while helping customers navigate the complex maritime environment. The strategic alliance builds on the complementary strengths of S&P Global and ORBCOMM in global trade and logistics ecosystems. S&P Global's equity investment in ORBCOMM further emphasizes its commitment to this strategic alliance.

"We're excited to join forces with S&P Global to unlock new intelligence from our deep data resources and deliver new levels of intelligence to global supply chain stakeholders," said Sameer Agrawal, CEO of ORBCOMM. "Our AIS team looks forward to scaling their solutions with S&P Global, while we continue to sharpen our focus on ground-breaking smart supply chain visibility technology that serves the world's intermodal shipping ecosystem."

The acquisition is subject to customary closing conditions, including receipt of certain regulatory approvals. It is expected to close during 2025 and financial terms of the transaction were not disclosed.

DLA Piper served as legal advisor to S&P Global. PJT Partners and Simpson Thacher & Bartlett served as financial and legal advisors, respectively, to ORBCOMM.

Forward-Looking Statements: This report contains "forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995.  These statements, which express management's current views concerning future events, trends, contingencies or results, appear at various places in this report and use words like "anticipate," "assume," "believe," "continue," "estimate," "expect," "forecast," "future," "intend," "plan," "potential," "predict," "project," "strategy," "target" and similar terms, and future or conditional tense verbs like "could," "may," "might," "should," "will" and "would." For example, management may use forward-looking statements when addressing topics such as: the outcome of contingencies; future actions by regulators; changes in the Company's business strategies and methods of generating revenue; the development and performance of the Company's services and products; the expected impact of acquisitions and dispositions; the Company's effective tax rates; and the Company's cost structure, dividend policy, cash flows or liquidity.

Forward-looking statements are subject to inherent risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements include, among other things:

• worldwide economic, financial, political, and regulatory conditions (including slower GDP growth or recession, instability in the banking sector and inflation), and factors that contribute to uncertainty and volatility, natural and man-made disasters, civil unrest, public health crises (e.g., pandemics), geopolitical uncertainty (including military conflict), and conditions that may result from legislative, regulatory, trade and policy changes, including from the new US administration;
• the volatility and health of debt, equity, commodities, energy and automotive markets, including credit quality and spreads, the level of liquidity and future debt issuances, demand for investment products that track indices and assessments and trading volumes of certain exchange traded derivatives;
• the demand and market for credit ratings in and across the sectors and geographies where the Company operates;
• the Company's ability to maintain adequate physical, technical and administrative safeguards to protect the security of confidential information and data, and the potential for a system or network disruption that results in regulatory penalties and remedial costs or improper disclosure of confidential information or data;
• the outcome of litigation, government and regulatory proceedings, investigations and inquiries;
• concerns in the marketplace affecting the Company's credibility or otherwise affecting market perceptions of the integrity or utility of independent credit ratings, benchmarks, indices and other services;
• the level of merger and acquisition activity in the United States and abroad;
• the level of the Company's future cash flows and capital investments;
• the effect of competitive products (including those incorporating generative artificial intelligence ("AI")) and pricing, including the level of success of new product developments and global expansion;
• the impact of customer cost-cutting pressures;
• a decline in the demand for our products and services by our customers and other market participants;
• our ability to develop new products or technologies, to integrate our products with new technologies (e.g., AI), or to compete with new products or technologies offered by new or existing competitors;
• our ability to attract, incentivize and retain key employees, especially in a competitive business environment;
• our ability to successfully navigate key organizational changes, including among our executive leadership;
• the Company's exposure to potential criminal sanctions or civil penalties for noncompliance with foreign and U.S. laws and regulations that are applicable in the jurisdictions in which it operates, including sanctions laws relating to countries such as Iran, Russia and Venezuela, anti-corruption laws such as the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act of 2010, and local laws prohibiting corrupt payments to government officials, as well as import and export restrictions;
• the continuously evolving regulatory environment in Europe, the United States and elsewhere around the globe affecting each of our businesses and the products they offer, and our compliance therewith;
• the Company's ability to make acquisitions and dispositions and successfully integrate the businesses we acquire;
• consolidation of the Company's customers, suppliers or competitors;
• the introduction of competing products or technologies by other companies;
• the ability of the Company, and its third-party service providers, to maintain adequate physical and technological infrastructure;
• the Company's ability to successfully recover from a disaster or other business continuity problem, such as an earthquake, hurricane, flood, civil unrest, protests, military conflict, terrorist attack, outbreak of pandemic or contagious diseases, security breach, cyber attack, data breach, power loss, telecommunications failure or other natural or man-made event;
• the impact on the Company's revenue and net income caused by fluctuations in foreign currency exchange rates; and
• the impact of changes in applicable tax or accounting requirements on the Company.

The factors noted above are not exhaustive. The Company and its subsidiaries operate in a dynamic business environment in which new risks emerge frequently. Accordingly, the Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances arising after the date on which it is made, except as required by applicable law. Further information about the Company's businesses, including information about factors that could materially affect its results of operations and financial condition, is contained in the Company's filings with the SEC, including Item 1A, Risk Factors in our most recently filed Annual Report on Form 10-K.

About ORBCOMM

ORBCOMM is a pioneer in IoT technology, empowering customers with insight to make data-driven decisions that help them optimize their operations, maximize profitability and build a more sustainable future. With 30 years of experience and one of the most comprehensive solution portfolios in the industry, ORBCOMM enables the management of over a million assets worldwide for a diverse customer base spanning transportation, supply chain, heavy equipment, maritime, natural resources and government. For more information about how ORBCOMM is driving the evolution of industry through the power of data, visit www.orbcomm.com.

About S&P Global
S&P Global (NYSE: SPGI) provides essential intelligence. We enable governments, businesses and individuals with the right data, expertise and connected technology so that they can make decisions with conviction. From helping our customers assess new investments to guiding them through sustainability and energy transition across supply chains, we unlock new opportunities, solve challenges, and accelerate progress for the world.

We are widely sought after by many of the world's leading organizations to provide credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help the world's leading organizations plan for tomorrow, today. For more information, visit www.spglobal.com.

Media Contact
Amanda Oey
S&P Global Market Intelligence
+1 212 438 1904
amanda.oey@spglobal.com 

View original content to download multimedia:https://www.prnewswire.com/news-releases/sp-global-agrees-to-acquire-orbcomms-automatic-identification-system-business-strengthening-its-supply-chain-and-maritime-offerings-302437245.html

SOURCE S&P Global

FAQ

What is the strategic importance of S&P Global's acquisition of ORBCOMM's AIS business?

The acquisition strengthens S&P Global's maritime and supply chain offerings, providing enhanced vessel tracking capabilities and critical insights for business intelligence and decision-making in global markets.

How will ORBCOMM's AIS technology benefit S&P Global's Market Intelligence division?

The AIS technology provides high-quality satellite and terrestrial vessel tracking data, supporting applications in supply chain visibility, maritime safety, surveillance, environmental monitoring, and regulatory compliance.

What is the timeline for S&P Global's ORBCOMM AIS business acquisition?

The acquisition is expected to close during 2025, pending customary closing conditions and regulatory approvals.

How does the strategic alliance between S&P Global and ORBCOMM work?

S&P Global will take an equity position in ORBCOMM, and both companies will collaborate to develop new supply chain data and insight offerings, leveraging their complementary strengths in global trade and logistics.