Orbcomm takes stake in tracking solutions specialist

M2M satellite operator Orbcomm has made a US$2.25m equity investment in Alanco Technologies, a US-based specialist in wireless tracking and asset management solutions.
Orbcomm snapped up 500,000 shares of Alanco Series E Convertible Preferred Stock for…

M2M satellite operator Orbcomm has made a US$2.25m equity investment in Alanco Technologies, a US-based specialist in wireless tracking and asset management solutions.

Orbcomm snapped up 500,000 shares of Alanco Series E Convertible Preferred Stock for US$2.5m, or US$4.50 per preferred share. Each Series E share is convertible into 12 common shares. If Orbcomm converted all its preferred stock, the M2M specialist would hold a 17.34% stake in Alanco.

In addition, Orbcomm and Alanco have entered into a product/software development cooperation agreement for Alanco’s StarTrak Systems subsidiary to develop new products featuring dual-mode cellular and satellite communications capabilities, to operate over Orbcomm’s network.

Robert Kauffman, Alanco Chairman & CEO, commented: “This strategic partnership with Orbcomm represents a major milestone towards achieving our growth objectives. We welcome Orbcomm as a significant new Alanco shareholder, as their US$2.25m investment significantly enhances our overall financial strength and industry competitive position.

“The Product/Software Development Cooperation Agreement will serve to accelerate StarTrak’s growth in both its primary refrigeration transportation business and new, large potential market applications such as aftermarket construction equipment monitoring.”