New ORBCOMM agreement supports Inmarsat’s M2M business growth strategy
Inmarsat plc (LSE: ISAT.L) confirmed that it has entered into binding agreements to sell its 19% holding in SkyWave Mobile Communications, Inc. (SkyWave) to ORBCOMM Inc. (Nasdaq: ORBC) for total expected proceeds at closing of $32.2m. ORBCOMM has in turn entered into binding agreements to acquire 100% of SkyWave subject to regulatory approvals. Closing is expected in early 2015.
The share sale is one part of a suite of agreements with ORBCOMM, a leading global provider of Machine-to-Machine (M2M) solutions, which will collectively enhance ORBCOMM‘s and Inmarsat’s M2M capabilities. These agreements cover the joint ownership and future development and commercialization of the IsatData Pro (IDP) technology, enabling Inmarsat to enhance the offering to its M2M partner ecosystem, further supporting the adoption of IDP in multiple new markets. As part of the agreements with ORBCOMM, Inmarsat will acquire SkyWave’s satellite network assets, which are hosted at three Inmarsat Satellite Access Stations around the world, for $7.5m.
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Inmarsat plc is the leading provider of global mobile satellite communications services. Since 1979, Inmarsat has been providing reliable voice and high-speed data communications to governments, enterprises and other organizations, with a range of services that can be used on land, at sea or in the air. Inmarsat employs around 1,600 staff in more than 60 locations around the world, with a presence in the major ports and centres of commerce on every continent. Inmarsat is listed on the London Stock Exchange (LSE:ISAT.L). The Inmarsat press release newsfeed and corporate updates are on Twitter @InmarsatGlobal.