Milbank is advising ORBCOMM Inc. (Nasdaq: ORBC), a global provider of Internet of Things (IoT) solutions, in connection with its entry into a merger agreement to be acquired by GI Partners, a leading US-based investor in data infrastructure businesses, in an all-cash transaction that values ORBCOMM at approximately $1.1 billion, including net debt.
Under the terms of the agreement, ORBCOMM stockholders will receive $11.50 in cash per outstanding share of common stock upon closing of the transaction, representing a premium of approximately 52% to ORBCOMM’s closing share price on April 7th and a 50% premium over the 90-day volume-weighted average share price through that date.
The investment by GI Partners will support ORBCOMM’s strong momentum in the industrial IoT as it increases its investment in sales, marketing and technology innovation to accelerate growth, execute on its long-term strategic plan and global market expansion, and provide added flexibility as a privately-held company.
The parties expect the transaction to close in the second half of 2021. Subject to and upon completion of the transaction, ORBCOMM will become a privately-held company and its common stock will no longer be listed on the Nasdaq Stock Market.
The Milbank deal team was led by partners Scott Golenbock, Jim Ball, Alan Stone and John Franchini and Global Corporate associates Benjamin Fidler, Reed Homan and Alessandra Rosales. The team also included Executive Compensation and Employee Benefits partner Mike Shah and associate Kelly Bartley, Tax partner Max Goodman and associate Michael Rivkin, Antitrust partner Fiona Schaeffer, Transportation and Space partners Dara Panahy and Patrick Campbell, special counsel Bijan Ganji and associate Coral O'Connor, Global Risk & National Security associate Sean Heiden, Intellectual Property special counsel Nathaniel Browand and Global Leveraged Finance partner Michael Bellucci and associate Emily Rutcofsky.
