ORBCOMM Inc (Nasdaq: ORBC), a provider of machine-to-machine (M2M) systems, has completed the acquisition of Euroscan Holdings BV, a global supplier of refrigerated transportation temperature compliance recording systems.
Based in the Netherlands, Euroscan’s integrated systems are used worldwide to ensure safe and secure transportation of food and pharmaceuticals by monitoring and assuring temperature compliance throughout the supply chain. Terms of the acquisition will be available in subsequent public filings.
Euroscan’s temperature recorders enable its customers to comply with European cold chain temperature and food safety regulations and gain operating advantages and efficiencies. Over the past few years, Euroscan began transitioning its recording product suite to an M2M wireless system and sells wireless adaptor products that allow them to convert their large installed base of recording products to wireless telematics systems. Euroscan has a worldwide installed base of 200,000 recording units, of which about 10,000 are wireless subscribers. Euroscan generates a large portion of its business through original equipment manufacturer (OEM) factory installs of its temperature monitoring products on refrigerated assets, trucks, and trailers. Demand for telematics services to enable refrigerated transportation monitoring has fueled rapid expansion of Euroscan’s wireless solutions business.
ORBCOMM will leverage Euroscan’s distribution channels in Europe to increase market expansion of ORBCOMM’s suite of M2M products and services in key industries such as transportation and heavy equipment. In addition, ORBCOMM expects that the scale and diversity of its global M2M systems portfolio will drive growth for Euroscan’s distribution channels in the Far East, South America, and South Africa.
As part of this transaction, Ameriscan, Euroscan’s North American subsidiary and a provider of temperature monitoring devices, will add scale and an expanded portfolio of cold chain monitoring services that will complement ORBCOMM’s North American transportation operations.
For more information, go to www.orbcomm.com.