ORBCOMM Inc. (ORBC) has signed the definitive agreement to be acquired by the GI partner today after which the ORBC stock price surged by 52.18% to reach $11.52 a share as of this writing. ORBC stock was gloomy at the previous trading session and closed with a 3.07% drop. Let’s understand more about it.
ORBCOMM Inc. (ORBC) is the solution provider of the Internet of Things in the United States and the globe. In connection with the recently announced agreement, ORBC stock will be acquired by the GI partner in an all-cash transaction that would value ORBCOMM at approximately $1.1 billion. The stockholders of ORBC stock would get $11.50 in cash per outstanding share of ORBC’s common stock upon the closing of the transaction which represent the nearly 52% premium to ORBC’s closing share price observed on April 7, 2021, and a 50% premium of 90 days volume-weighted average share price till April 7, 2021.
ORBCOMM is focused on global expansion as well as development in its various areas for long-term growth. The investment by GI partner in connection with the above-mentioned agreement would help the ORBC stock in the increasing investment in its sales, marketing, and technology advancement and provide more flexibility to ORBCOMM as a privately held company.
On April 6, 2021, ORBCOMM was selected by IWX Motor Freight in order to provide a solution related to cold chain telematics with the purpose of tracking, controlling, and monitoring the IWX refrigerated trailers. ORBC solution of cold chain monitors two-way temperature control as well as the location of the refrigerated shipments by ensuring the integrity and security of IWX freight in the whole shipment process.
ORBC stock news about the definitive agreement with GI partner has captivated the attention of the investors as far as market sentiment is concerned. This new agreement will help ORBC stock in the overall growth in the long term. No doubt that technology is advancing day by day and this advancement would do wonders in the future. Hence tech companies must bring continuous innovation in their operations in order to survive in the future. That’s why companies like ORBCOMM are greatly focused on technology innovation. Hence it is better for investors having long-term prospects to do both technical and fundamental analysis of ORBC stock.