US-based machine-to-machine satellite operator Orbcomm has bought local sensor software firm InSync from privately-held technology group Identec for US$11m. It is Orbcomm’s first acquisition of a company that focuses exclusively on software, helping…
US-based machine-to-machine satellite operator Orbcomm has bought local sensor software firm InSync from privately-held technology group Identec for US$11m.
It is Orbcomm’s first acquisition of a company that focuses exclusively on software, helping it to expand into new industry verticals.
InSync has 47 employees divided between the US and South Asia, and its products power global sensor-driven asset tracking and remote monitoring applications.
“InSync is a best-in-class application builder, and their advanced enterprise solutions will help our resellers and solutions providers reduce development costs and time to market while delivering powerful [Internet of Things] solutions to end users in key vertical markets,” said Orbcomm CEO Marc Eisenberg
“In addition, InSync brings an impressive base of customers and adds significant capabilities to Orbcomm’s software team.”
It comes just three weeks after Orbcomm closed its US$130m deal for Canadian service provider SkyWave, making it the largest global space-based M2M communications company.
SkyWave is the biggest M2M service provider on the L-band network of British MSS operator Inmarsat, which partnered with Orbcomm in 2013 to forge a standardised platform that would create chipsets at lower price points.
Raymond James analyst Chris Quilty said: “Historically, InSync’s customer base has been heavily concentrated in RFID sensor networks, but the company’s software platform is wholly network agnostic (InSync currently supports several thousand wireless customers, in addition to 2.5 million RFID assets).
“Consequently, we expect Orbcomm to serve up the InSync platform to its existing customers, while also using InSync as a springboard to address new vertical markets where Orbcomm currently does not have a presence.”
The consideration was paid in cash with US$1.32m placed in escrow. There is also a one-year earnout period that could see Orbcomm pay Identec US$2.5m in cash if InSync’s revenue is in excess of a lower specified threshold amount, and an additional US$2.5m if it beats a higher target.
Orbcomm funded the deal through cash on hand and the borrowing of a further US$10m from a US$160m loan facility it secured last year from Macquarie.
