ORBCOMM Inc (NASDAQ: ORBC) shares rose by 52.05% during the trading session on Thursday, touching the low of $11.41 and the high of $11.55. There were 41.71 million shares of ORBCOMM stock traded in the session, representing an increase of 2900.91% over the average volume of 1.39M shares. During its last trading session, ORBC stock ended trading at $11.51. An acquisition deal led to a surge in ORBC stock.
How will the deal work?
Providing companies with solutions that connect businesses to their assets in order to dramatically increase visibility and improve operational efficiency over the Internet of Things, ORBCOMM is a global leader and innovator in the industry. ORBC offers a wide range of asset monitoring and control solutions, including seamless mobile and satellite connectivity, powerful software packages, as well as support services from installation to deployment and customer care. ORBCOMM’s varied customer base includes over 100 OEMs in the transportation, supply chain management, heavy equipment, maritime, renewable energy, and government organizations.
ORBCOMM announced yesterday that it has come to an agreement with GI Partners, a leading US-based investor in data infrastructure businesses, to be acquired.
- ORBC will be acquired for about $1.1 billion in a cash-only transaction including its net debt.
- The terms of the agreement will provide ORBCOMM shareholders with $11.50 cash for each outstanding share of its common stock upon closing of the transaction.
- This represents an approximately 52% premium over the closing share price of ORBC stock on April 7th and a 50% premium over the 90-day volume-weighted average share price that day.
How ORBC excel?
ORBCOMM (ORBC) will utilize the investment from GI Partners to continue building its strong momentum in the industrial internet of things. ORBC will be able to invest in sales, marketing and technology innovation to accelerate growth, execute on its long-term strategic plan, and expand its global market while being privately held.