New Jersey’s Orbcomm, a global provider of machine-to-machine solutions, is acquiring Ottawa’s SkyWave Mobile Communications, an M2M service provider.
The initially reported acquisition price was $130 million, but John Eckert, former managing partner at Canadian venture capital firm McLean Watson Capital, told peHUB Canada that gross proceeds to investors will total $182 million.
“We expect the combination of SkyWave and Orbcomm to deliver significant value for both our shareholders and customers,” said Marc Eisenberg, Orbcomm’s Chief Executive Officer. “By combining our complementary products, distribution channels and broad geographic footprints – with support from Inmarsat – we are adding significant scale to our business.”
“Our customers will benefit from access to one of the industry’s broadest set of complete solutions, global regulatory authorizations and satellite-based connectivity options,” he added. “We also expect this added scale to create sustainable long-term shareholder value.”
“Orbcomm shares SkyWave’s commitment to customers and passion for innovation, making it the perfect partner for our customers and employees,” said Pui-Ling Chan, SkyWave’s Chief Executive Officer. “We are excited about the combination of our two organizations, which will create a leading force in the industry to provide more products, applications and tool sets aimed at the ‘Internet of Things.'”
“Together, we have the capabilities to serve customers of all sizes, locations or sectors with one of the most comprehensive and competitive portfolios, as we lead the M2M industry to a new level,” Chan added.
Orbcomm will acquire SkyWave on a cash-free debt-free basis. The acquisition, which has been unanimously approved by the boards of directors of both companies, is expected to close in early 2015, subject to receipt of required regulatory approvals.