ORBCOMM Inc (Nasdaq: ORBC), a global satellite data communications company focused on two-way machine-to-machine (M2M) communications; and PAR Technology Corporation (NYSE: PAR), a provider of hospitality technology and services, have entered into a definitive agreement. ORBCOMM will acquire the assets of PAR’s subsidiary, PAR Logistics Management Systems (PAR LMS), a provider of advanced systems for monitoring transport assets and cargo in the transportation and distribution industries.
Marc Eisenberg, chief executive officer of ORBCOMM, said, “We expect to offer customers increased features, higher levels of integration, and increased scale by adding PAR LMS to our portfolio of leading-edge businesses. We look forward to welcoming PAR LMS’s employees and customers to ORBCOMM.”
“The decision to sell PAR LMS resulted from our board’s evaluation over the past year of various strategic alternatives to position the company for long-term growth. Focusing on the core businesses will benefit customers and shareholders and the sale of PAR LMS is an important step forward to unlocking the intrinsic value of PAR’s underlying assets,” said Paul B Domorski, PAR chairman and CEO.
Under terms of the transaction, ORBCOMM will acquire PAR LMS for about $6 million at closing, comprised of cash and common stock, plus the potential of up to $4 million in additional consideration based on achieving specific sales targets. The transaction is expected to close in mid-January 2012, subject to customary closing conditions.
The acquisition of PAR LMS adds new vertical markets to ORBCOMM and will enhance its ability to provide efficiency, predictability, and quality in cold chain management. The combined platform supports ORBCOMM’s growth strategy by expanding its satellite, terrestrial, and dual-mode offerings and advancing sales growth in these business segments. PAR LMS adds strategic channel relationships, a broad customer base, and a strong technology platform. This acquisition follows ORBCOMM’s purchase of StarTrak in May 2011.
Raymond James acted as financial advisors to ORBCOMM in this transaction. Needham & Company LLC acted as financial advisor to PAR Technology Corp.