M2M satellite operator Orbcomm has bought the asset tracking operations of communications developer Comtech as it expands further down the value chain.
The US group acquired Comtech’s Sensor Enabled Notification System (SENS) assets, which includes…
M2M satellite operator Orbcomm has bought the asset tracking operations of communications developer Comtech as it expands further down the value chain.
The US group acquired Comtech’s Sensor Enabled Notification System (SENS) assets, which includes satellite hardware, network technology and web platforms, for an undisclosed sum.
SENS uses MSS operator Globalstar’s network to provide services to more than 20,000 subscribers.
According to Orbcomm, the deal supports its “multi-network operator strategy”, and complements its recent US$2.75m acquisition of value added reseller GlobalTrak, which uses SENS for applications including tracking military containers in Pakistan and Afghanistan.
Orbcomm CEO Marc Eisenberg said: “The SENS acquisition expands Orbcomm’s portfolio of services by adding new offerings to our existing suite of satellite and cellular network services.
“We see this market segment growing rapidly based on customers that can benefit from the Globalstar network’s reliable, low-power, low-cost, one-way satellite data service for short messaging along with its unique advantages in power management.”
As well as snapping up GlobTrak, the company also acquired value added reseller MobileNet earlier this year for US$5m, comprising US$3.5m in cash and US$1.5m in Orbcomm shares.
Near Earth advised Orbcomm on those reseller transactions, which were partly funded from US$45m in debt financing the operator completed in January 2013, but it is not involved in the latest deal.
US commercial launcher SpaceX is due to place a batch of Orbcomm’s next generation satellites on a Falcon 9 rocket before the end of this year.
The last time SpaceX launched a spacecraft for the group, a Falcon 9 failure left its prototype next generation satellite stranded in the wrong orbit. However, Orbcomm said it managed to get enough data before losing the prototype to proceed with its future constellation.
