ORBCOMM Inc. purchased the assets of inthinc Inc., a provider of fleet management and driver safety services to a range of industrial enterprises.
The deal is expected to allow ORBCOMM to accelerate its entry into the fleet management market by adding vehicle telematics and driver safety services to its internet of things product offering, the company said June 12.
The company paid $34.2 million in cash and the remaining $764,122 was paid through the issuance of 76,796 shares of ORBCOMM common stock based on the 20-day trailing average closing price of ORBCOMM common stock ending on June 8, according to a June 12 SEC filing.
Also, contingent consideration of up to $25 million is payable to inthinc over a two-year period based on a two times multiple of incremental "GAAP service revenues" in excess of $17.5 million. The earn-out may be payable at ORBCOMM's option entirely in ORBCOMM common stock or in any combination of common stock and cash.
ORBCOMM was advised by Raymond James.