[12-29-11] Orbcomm<\/b> has reached a definitive agreement with hospitality technology and services company PAR Technology Corp.<\/b> to acquire its subsidiary PAR Logistics Management Systems (PAR LMS)<\/b> for approximately $6 million in cash and common stock, Orbcomm confirmed Dec. 28.
\n The satellite data communications operator said its bid included potential awards of up to $4 million based on PAR LMS achieving specific sales targets. \u201cThe deal would increase our customer base and strengthen our foundation of value-added services. We look forward to offer advanced products in the fast-growing telematics industry,\u201d Orbcomm said in the announcement.
\n PAR LMS is a provider of advanced solutions for monitoring transport assets and cargo in the transportation and distribution industries. The transaction aims to boost Orbcomm\u2019s revenue growth, as is expected to be accretive to adjusted EBITDA by the end of 2012. The transaction is expected to close in mid-January 2012.
\n This is the second acquisition for Orbcomm this year. In May, the company completed a deal to acquire substantially all of the assets of StarTrak Systems<\/b> from Alanco Technologies<\/b>. StarTrak is a provider of tracking, monitoring and control services for the refrigerated transport market.
\n \u201cThe StarTrak acquisition is an important milestone in the continued evolution of Orbcomm as an innovative, satellite-based M2M communications services company,\u201d Orbcomm\u2019s CEO, Marc Eisenberg said in a statement. \u201cWe are excited about the opportunity to grow the StarTrak business and to introduce their market-leading technology to our global distribution channels. We look forward to bringing our hardware and communications expertise to the company and to building next-generation services for our complementary vertical markets.\u201d
\n In its 2011 third quarter results, Orbcomm projected that its new AIS satellites would start to generate revenue in the near future. Earlier this week, OHB System<\/b> affiliate LuxSpace completed construction and testing of the LuxSpace<\/b> VesselSat2 AIS satellite for Orbcomm and shipped the spacecraft to the China Great Wall Industry Corp.\u2019s (CGWIC)<\/b> Tiayuan Satellite Launch Center in China.
\n Raymond James Analyst Chris Quilty forecasted Orbcomm\u2019s adjusted EBITDA to grow in 2012, driven by accelerating subscriber growth, the company\u2019s StarTrak acquisition, expanded AIS revenues, and the launch of several new satellites. \u201cWe reiterate our outperform rating on Orbcomm as the company\u2019s third-quarter EBITDA tops forecasts by 17 percent. Its third quarter adjusted EBITDA growth is the second-highest level in company history. The strength was primarily a function of better-than-expected service revenues \u2014 up 46 percent from the same period last year,\u201d Quilty said in a research report.<\/p>\n","protected":false},"excerpt":{"rendered":"
[12-29-11] Orbcomm has reached a definitive agreement with hospitality technology and services company PAR Technology Corp. to acquire its subsidiary PAR Logistics Management Systems (PAR LMS) for approximately $6 million in cash and common stock, Orbcomm confirmed Dec. 28. The satellite data communications operator said its bid included potential awards of up to $4 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[2],"tags":[],"class_list":["post-83785","post","type-post","status-publish","format-standard","hentry","category-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/83785"}],"collection":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/comments?post=83785"}],"version-history":[{"count":0,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/posts\/83785\/revisions"}],"wp:attachment":[{"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/media?parent=83785"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/categories?post=83785"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/starpath.global\/blog\/wp-json\/wp\/v2\/tags?post=83785"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}