ORBCOMM to be acquired by GI Partners for $1.1B

  • ORBCOMM (NASDAQ:ORBC) to be acquired by GI Partners, a leading US-based investor in data infrastructure businesses, in an all-cash transaction of ~$1.1B, including net debt.
  • ORBCOMM stockholders will receive $11.50 in cash per outstanding share, representing a premium of ~52% to closing share price on April 7 and a 50% premium over the 90-day volume-weighted average share price through that date.
  • 'This transaction will provide immediate and substantial value to ORBCOMM stockholders, reflecting the tremendous commitment and work of our employees and stakeholders. The partnership with GI Partners will provide us the opportunity to rapidly advance our long-term strategy," said Marc Eisenberg, ORBCOMM's Chief Executive Officer. 'GI Partners has an established track record of working with companies to accelerate growth, and we look forward to continuing to drive innovation, providing world-class service to our global customers and expanding our market share in the industrial IoT as a privately held company."
  • The deal is expected to close in the second half of 2021.

    For this year the company, based in Rochelle Park revenue will be around 271.9 million USD. This is according to the average of the analysts' estimates. This is slightly more than 2020's revenue of 248.47 million USD.

    Historical revenues and results Orbcomm Inc plus estimates 2020


    The analysts expect for 2021 a net loss of 7 million USD. For this year the consensus of the result per share is a loss of 10 cent. The PE-ratio therefore is -115.2.

    For this year analysts don't expect the company to pay a dividend. The average dividend yield of the telecommunications companies equals a good 5.46 percent.

    Based on the current number of outstanding shares Orbcomm Inc 's market capitalization 899.28 million USD. The Orbcomm Inc stock was the past 12 months quite volatile. Since last April the stock is even 382 percent higher. This year the stock price moved between 2 and 12 dollar.

    Historical stock prices Orbcomm Inc

    fundamental research orbcomminc

    On Thursday the stock closed at 11.52 USD.

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