- THE MAGAZINE
ORBCOMM Inc., a global provider of Machine-to-Machine (M2M) software, completed the acquisition of Euroscan Holdings, B.V. (Euroscan), a global supplier of refrigerated transportation temperature compliance recording systems. Based in the Netherlands, Euroscan’s systems are used worldwide to ensure the safe and secure transportation of food and pharmaceuticals by monitoring and assuring temperature compliance throughout the supply chain. Terms of the acquisition will be available in subsequent public filings.
Euroscan’s temperature recorders enable its customers to comply with the European cold chain temperature and food safety regulations and gain significant operating advantages and efficiencies. Over the past few years, Euroscan began transitioning its recording product suite to an M2M wireless software and sells wireless adaptor products that allow them to convert their large installed base of recording products to wireless telematics solutions. Euroscan has a worldwide installed base of 200,000 recording units of which approximately 10,000 are wireless subscribers. Euroscan generates a large portion of its business through Original Equipment Manufacturer (OEM) factory installs of its temperature monitoring products on refrigerated assets, trucks and trailers. The demand for telematics services to enable refrigerated transportation monitoring has fueled rapid expansion of Euroscan’s wireless business.
This acquisition supports ORBCOMM’s long-term growth strategy of adding vertical expertise, technologies and geographic markets to strengthen its end-to-end solutions portfolio. ORBCOMM will leverage Euroscan’s distribution channels in Europe to increase market expansion of ORBCOMM’s suite of M2M products and services in key industries such as transportation and heavy equipment. In addition, ORBCOMM expects that the scale and diversity of its global M2M portfolio will drive growth for Euroscan’s distribution channels in the Far East, South America and South Africa.
As part of this transaction, Ameriscan, Euroscan’s North American subsidiary and a leading provider of temperature monitoring devices, will add scale and an expanded portfolio of cold chain monitoring services that will complement ORBCOMM’s North American transportation operations.
“The acquisition of Euroscan allows ORBCOMM to complement its North American leadership position in M2M software by adding a significant distribution channel in Europe and other key geographies where Euroscan has market share,” said Marc Eisenberg, CEO of ORBCOMM. “By leveraging Euroscan’s suite of powerful asset monitoring, control technology and M2M solutions, ORBCOMM will be able to provide an even greater level of value, service and return on investment for a broader set of customers in the global M2M market.”
The management team at ORBCOMM will discuss the details of this transaction on the company’s earnings call on Thursday, March 13 at 10:30 am ET. Please see ORBCOMM’s earnings announcement for call-in information.
ORBCOMM was advised by Near Earth LLC on this transaction.