EMS Technologies Inc. announced that it has signed a definitive agreement to acquire Satamatics Global Ltd., a global provider of Inmarsat IsatM2M (machine-to-machine or “M2M”) services, headquartered in Tewkesbury, UK.
The acquisition complements the company’s existing Iridium- and Inmarsat-based tracking solutions. EMS expects the acquisition to be accretive and to add EBITDA of $3 to $5 M in the first year post-acquisition.
“Acquiring Satamatics extends EMS’s satellite capabilities into the growing M2M market using low-cost satellite data terminals, and further strengthens EMS as a market leader in satellite-based applications for tracking people and assets worldwide,” says EMS Technologies’ president and CEO Paul Domorski. “We anticipate significant synergies with EMS’s current satellite-based helicopter and military-vehicle tracking businesses. In particular, we expect promising growth for security and logistics applications in the road transport market, particularly in South America, Africa and the Middle East.”
Operating with Inmarsat’s IsatM2M satellite service, Satamatics enables organizations to locate, track and communicate with mobile assets, safeguard fleets, cargo and personnel, and monitor fixed assets in the world’s most hostile and remote areas. Founded in 2001, Satamatics has an extensive worldwide distribution network of value-added resellers, but also supplies direct to end users complete tracking and monitoring solutions (hardware, airtime and mapping) for land transport, oil and gas, and maritime industries. Since 2005, the company has had a consistent compounded annual growth rate of 29 percent.
Frost & Sullivan reports that the satellite M2M market is expected to grow by 21 percent annually, from $610 M in 2008 to $900 M in 2009.
Dino Koutrouki, CEO of Satamatics, will continue to lead Satamatics post-closing. According to Koutrouki, “As a growth business, Satamatics recognizes the value of aligning ourselves to a larger, well-established, and global satellite business focused on complementary markets. EMS brings significant capabilities in product and application development to our offerings.”
EMS plans to retain Satamatics’ staff and current operations in Tewkesbury, UK. The parties anticipate the transaction to close in the first half of 2009, subject to customary closing conditions, including the receipt of necessary regulatory approval. EMS was represented in the transaction by King & Spalding LLP, and the majority shareholders of Satamatics were represented by Steptoe & Johnson LLP.
