Satellite and M2M specialist Orbcomm has acquired Euroscan Holdings in a bid to boost its presence in Europe’s transportation and heavy equipment sectors.
Euroscan (Hoensbroek, Netherlands) develops systems to monitor compliance with regulations on refrigerated transportation temperatures and serves customers in the global food and pharmaceuticals industries.
Orbcomm (Rochelle Park, NJ, USA) said the terms of the acquisition would be made available in forthcoming public filings, but it expects the takeover will strengthen its portfolio of services.
In a statement, it said it would also leverage Euroscan’s distribution channels to sell additional M2M products and services in the transportation and heavy equipment sectors.
The satellite player also intends to expand Euroscan’s distribution channels into the Far East, South America and South Africa.
As part of the transaction, it says it will immediately expand the portfolio of cold chain monitoring services available from Ameriscan, Euroscan’s North American subsidiary, to complement its own products.
Euroscan currently claims to have an installed base of 200,000 recordings units, of which approximately 10,000 are wireless subscribers.
Much of the company’s business comes from installations of temperature monitoring products on refrigerated assets, trucks and trailers, with demand for telematics services in this area fuelling the expansion of the wireless business.
Orbcomm says the acquisition ties into its strategy of adding vertical-market expertise, technologies and geographical markets to strengthen its end-to-end services portfolio.
“The acquisition of Euroscan allows Orbcomm to complement its North American leadership position in M2M solutions by adding a significant distribution channel in Europe and other key geographies where Euroscan has market share,” said Marc Eisenberg, Orbcomm’s chief executive.
“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,” he added.