ORBCOMM announced on 8 April that it had entered into an agreement to be bought by fellow American company GI Partners. GI, a private investment firm based in California, is looking to expand its “data infrastructure” portfolio. The terms of the transaction value ORBCOMM at abouit US$1.1 billion (including net debt). ORBCOMM shareholders are expected to receive a generous US$11.50 per share, amounting to a 50 per cent premium on average share price over the previous 90-day period.
Following the transaction ORBCOMM will become a private company. This follows in the footsteps recently made by some of its space industry fellows, specifically Inmarsat, Avanti and AsiaSat. The ORBCOMM Board has voted to approve the deal and shareholder ratification is expected soon via an extraordinary meeting. Following the shareholder go-ahead both parties expect the transaction to be completed during the second half of the year.
