US data infrastructure investor GI Partners is buying New Jersey-based IoT services provider Orbcomm for $1.1bn.

GI Partners says it will support Orbcomm’s momentum in industrial IoT as it increases its investment in sales, marketing and technology to accelerate growth, execute on its long-term strategic plan and global market expansion, and provide flexibility as a privately-held company.

“This transaction will provide immediate and substantial value to Orbcomm stockholders, reflecting the tremendous commitment and work of our employees and stakeholders,” said Marc Eisenberg, Orbcomm CEO. “The partnership with GI Partners will provide us the opportunity to rapidly advance our long-term strategy. GI Partners has an established track record of working with companies to accelerate growth, and we look forward to continuing to drive innovation, providing world-class service to our global customers and expanding our market share in the industrial IoT as a privately held company.”

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.

“Orbcomm has a long history of innovation, providing mission-critical services to customers across the global logistics landscape and a broad range of other industries,” said Mark Prybutok, managing director of GI Partners. “We are excited to work with the Orbcomm team to take the business forward as IoT use cases continue to evolve and grow.”

Orbcomm’s board of directors has unanimously approved the transaction and recommends that Orbcomm’s stockholders vote in favour of the transaction at the special meeting of stockholders to be called in connection with the transaction. The meeting will be held as soon as practicable following the filing of a definitive proxy statement with the US Securities & Exchange Commission (SEC) and subsequent mailing to its stockholders.

The transaction is expected to close following the satisfaction of customary closing conditions, including approval by stockholders and the receipt of required regulatory approvals.

Under the terms of the definitive merger agreement, Orbcomm and its representatives may actively solicit and consider alternative acquisition proposals during a 30-day go-shop period that will expire on May 7, 2021. Orbcomm has the right to terminate the definitive merger agreement with GI Partners to enter into a superior proposal subject to certain terms and conditions.

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.

PJT Partners and Raymond James are acting as financial advisors to Orbcomm, and Milbank is acting as legal counsel. Evercore is acting as financial advisor to GI Partners, and Simpson Thacher & Bartlett and Morgan, Lewis & Bockius are acting as legal counsel.

Orbcomm specialises in industrial IoT, connecting businesses to their assets to deliver increased visibility and operational efficiency. The company offers a set of asset monitoring and control products, including seamless satellite and cellular connectivity, hardware, and applications, all backed by end-to-end support, from installation to deployment to customer care.

The firm’s customer base includes premier OEMs and channel partners spanning transportation, supply chain, warehousing and inventory, heavy equipment, maritime, natural resources, and government. Founded in 2001, GI Partners is a private investment firm based in San Francisco, California. The firm has raised over $26bn in capital from institutional investors around the world to invest in private equity, real estate and dat