ORBCOMM [ORBC] on Jan. 5 said it has completed its $130 million acquisition of Canada’s SkyWave Mobile Communications, the largest machine-to-machine (M2M) service provider on the Inmarsat global L-band satellite network.
ORBCOMM said the acquisition furthers its strategy of offering a complete set of options and capabilities in the satellite communications industry while bolstering its M2M solutions portfolio. ORBCOMM said that combined with SkyWave it has over 1.2 million subscribers in the satellite-based M2M area.
“This transformative acquisition creates the largest space-based global M2M company with unparalleled capabilities, established go-to-market channels and global network coverage,” Marc Eisenberg, ORBCOMM’s CEO, said in a statement. “With our expanded scope and scale, we are well positioned to provide the industry’s most diverse portfolio of M2M solutions and connectivity options that leverage both the ORBCOMM and Inmarsat networks.”
SkyWave has more than 250,000 subscribers, 400 channel partners, annual sales of $60 million, and operating income of about $12 million.
Raymond James served as ORBCOMM’s financial adviser on the deal while SkyWave was advised by William Blair & Company.