Orbcomm Inc., a global provider of Machine-to-Machine (M2M) systems, announced that it has completed the acquisition of Euroscan Holdings, B.V. (Euroscan), a leading global supplier of refrigerated transportation temperature compliance recording systems.
Based in the Netherlands, Euroscan’s integrated turn-key systems are used worldwide for transportation of food and pharmaceuticals by monitoring and assuring temperature compliance throughout the supply chain. Terms of the acquisition will be available in subsequent public filings.
According to Orbcomm, Euroscan’s temperature recorders enable its customers to comply with the European cold chain temperature and food safety regulations and gain significant operating advantages and efficiencies. Over the past few years, Euroscan began transitioning its recording product suite to an M2M wireless system and sells wireless adapter products that allow it to convert a large installed base of recording products to wireless telematics.
Today, Euroscan has a worldwide installed base of 200,000 recording units of which approximately 10,000 are wireless subscribers. Euroscan generates a large portion of its business through Original Equipment Manufacturer (OEM) factory installs of its temperature monitoring products on refrigerated assets, trucks and trailers.
Orbcomm says the acquisition supports its long-term growth strategy of adding vertical expertise, technologies and geographic markets to strengthen its end-to-end portfolio. Orbcomm will leverage Euroscan’s distribution channels in Europe to increase market expansion of its own suite of M2M products and services in key industries such as transportation and heavy equipment. In addition, Orbcomm expects that the scale and diversity of its global M2M solutions portfolio will drive growth for Euroscan’s distribution channels in the Far East, South America and South Africa.
As part of this transaction, Ameriscan, Euroscan’s North American subsidiary and a provider of temperature monitoring devices, will add scale and an expanded portfolio of cold chain monitoring services that will complement Orbcomm’s North American transportation operations.
“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, chief executive officer of Orbcomm.