Mobile satellite operator Orbcomm has acquired the remaining 48% stake that it did not already own in Satcom International Group.
The M2M specialist paid a total consideration of US$1.07m split between 263,133 shares of Orbcomm common stock and…
Mobile satellite operator Orbcomm has acquired the remaining 48% stake that it did not already own in Satcom International Group.
The M2M specialist paid a total consideration of US$1.07m split between 263,133 shares of Orbcomm common stock and US$118,940 in cash.
On completion of the transaction, Satcom subsequently repaid its note holders and a trade creditor an aggregate of US$381,060 in cash in exchange for a waiver and release of the approximate US$1.6bn of debt owed by Satcom.
The takeover will enable Orbcomm to consolidate its European and Middle Eastern focussed businesses. Satcom owns 50% of Orbcomm Europe and held country representative agreements with the latter covering the UK, Ireland and Switzerland. It also held service license agreements with Orbcomm covering much of the Middle East and Central Asia.
Orbcomm Europe is licensed to resell Orbcomm satellite services under a service licence agreement with Orbcomm covering 43 jurisdictions in Europe.
Orbcomm acquired its majority 52% interest in Satcom from its former chairman and chief executive Jerome Eisenberg and former CFO Don Franco back in October 2005. The satellite operator paid the executives a consideration of 620,000 shares and US$3.6m in cash, the size of the latter being determined by the amount raised in Orbcomm’s 2006 IPO.
