OrbComm, a global satellite data communications company, has reached agreement to purchase Par Logistics Management Systems (Par LMS) from Par Technology Corp.
Par LMS provides transportation and cargo monitoring solutions.
“The addition of Par LMS’s customer base and advanced technology platform strengthens OrbComm’s foundation of value-added services and our ability to offer the most advanced products in the fast-growing telematics industry,” said Marc Eisenberg, CEO of OrbComm. “We expect to offer customers increased features, higher levels of integration and increased scale by adding Par LMS to our portfolio of leading edge businesses. We look forward to welcoming Par LMS’s employees and customers to OrbComm.”
OrbComm will pay approximately $6 million in cash and common stock with up to $4 million more based on achieving specific sales targets. The transaction is expected to close in mid-January.
“We are pleased with this agreement, which comes at the end of a thorough review and sale process. The decision to sell Par LMS resulted from our board’s evaluation over the past year of various strategic alternatives to position the company for long-term growth,” said Paul B. Domorski, Par chairman & CEO. “Focusing on the core businesses will benefit customers and shareholders and the sale of Par LMS is an important step forward to unlocking the intrinsic value of PAR’s underlying assets.”
