Global M2M specialist Orbcomm is to undertake an additional share offering in order to fund future acquisitions.
The company is to list 5.5 million new shares of common stock in a fully underwritten public offering. The underwriters also have an…
Global M2M specialist Orbcomm is to undertake an additional share offering in order to fund future acquisitions.
The company is to list 5.5 million new shares of common stock in a fully underwritten public offering. The underwriters also have an over-allotment option to purchase a further 825,000 shares.
Based on the last reported sale price of Orbcomm’s common stock on 15 January of US$6.78 per share, the issue could raise more than US$40m.
Raymond James is acting as sole book-running manager for the offering, with Canaccord Genuity and Craig-Hallum Capital Group are acting as co-managers.
Orbcomm stated that it intends to use net proceeds from the offering for future acquisitions as part of its strategy to pursue growth opportunities.
The company has completed a series of bolt-on acquisitions over the past year in order to bolster its M2M offering as it prepares for the launch of its second generation constellation.
In April 2013, Orbcomm completed both the US$5m purchase of value added reseller MobileNet as well as the US$2.75m acquisition of GlobalTrak, a government-focussed situational awareness services company.
Six months later, the company announced that it bought the Sensor Enabled Notification System (SENS) business from Comtech for US$1.978m. SENS provides one-way satellite asset tracking products to more than 20,000 subscribers worldwide.
Orbcomm’s US$230m next generation 17 satellite LEO constellation is scheduled to be launched by SpaceX in two batches this year. The first batch is due to be the launch service provider’s next mission out of Cape Canaveral.
