Acquisitions are celebrated when two companies become stronger as one, and so it is with...
ORBCOMM Inc. (Nasdaq: ORBC), a global provider of Machine-to-Machine (M2M) and Internet of Things (IoT) solutions, acquired Blue Tree Systems Limited (Blue Tree) provider of transportation management solutions across multiple classes of assets that include trucks, refrigerated straight trucks as well as refrigerated and dry trailers. Blue Tree is based in Galway, Ireland, along with its subsidiaries in the United States, Germany and France and serves more than 300 customers in North America, the European Union, United Kingdom, Australia, and New Zealand. The acquisition of Blue Tree solidifies ORBCOMM’s transportation portfolio by adding truck in-cab and refrigerated fleet vehicle solutions to ORBCOMM’s industry-leading cargo solutions. Customers will have access to an integrated offering encompassing nearly all transportation assets from one source. Blue Tree’s market leadership also adds strength and distribution in key geographies such as Europe, the Middle East and Africa.
Blue Tree’s products provides the needs of transportation companies that are increasingly looking to manage their assets under a single platform and facilitate simplified integration with their business systems. Blue Tree’s truck in-cab platform is based on an open Android architecture that offers customers a fully managed, flexible and proven solution that is easy for drivers to use.
In addition, Blue Tree offers advanced, country-specific compliance solutions in both North America and Europe. Blue Tree’s solutions meet the requirements for the Electronic Logging Device (ELD) Mandate regulations, which will require companies to replace drivers’ paper log-books with electronic “Hours of Service” applications within the next several months. Blue Tree’s customers achieve broad efficiencies, increased driver safety as well as workforce optimization throughout the supply chain.
Marc Eisenberg, ORBCOMM’s Chief Executive Officer said that with advanced trucking solutions combined with an integrated software platform, Blue Tree is a strong strategic addition to ORBCOMM’s broad transportation portfolio. He continued that combined with their acquisition of inthinc in June, Blue Tree enables ORBCOMM to provide the most complete transportation solution offering covering nearly every asset class — from in-cab to fleet vehicles to refrigerated assets to dry vans — making them the clear leader in this space and in global industrial IoT.
Charlie Cahill, Founder and Chief Executive Officer of Blue Tree Systems added that ORBCOMM is one of the leading IoT companies in the world, and they believe the increased scale, resources, customer base and geographic profile that ORBCOMM offers will support their rapid growth globally. He continued that they look forward to leveraging ORBCOMM’s strong brand equity in their markets. ORBCOMM’s leadership in transportation telematics provides great synergy and support for their transportation solutions and delivers an unmatched and long-lasting value proposition for transportation companies around the world.
ORBCOMM was advised by Raymond James on this transaction. Blue Tree Systems was advised by Investec Corporate Finance Ireland.