Atlanta, Ga.-based EMS Technologies, a leading supplier of wireless connectivity solutions, announced today that it has signed a definitive agreement to acquire Satamatics Global Ltd., Tewkesbury, U.K., a global provider of Inmarsat IsatM2M services.
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 million to $5 million 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,” said Paul Domorski, EMS Technologies’ president and CEO. “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.
Dino Koutrouki, CEO of Satamatics, will continue to lead Satamatics post-closing. EMS plans to retain Satamatics’ staff and current operations in Tewkesbury.
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.