Orbcomm acquires fleet management firm Inthinc
June 20, 2017
Satellite M2M company Orbcomm has acquired the assets of Inthinc, a Utah-based provider of fleet management and driver safety services to industrial enterprises.
Its vehicle telematics offerings are focused on improving driver safety, operational efficiency, regulatory compliance and workforce optimisation through the two-way integration of in-vehicle devices, smart mobile devices, web applications and data management services.
A long-time customer of Orbcomm's wireless data services, Inthinc provides its fleet management products to more than 100 enterprises and industrial companies around the world that operate large commercial vehicle fleets. In addition, it supports the emerging ELD Mandate regulations from the Federal Motor Carrier Safety Administration, which will require companies to replace drivers' paper log books with electronic hours-of-service applications in late 2017.
The company also has a strong market presence with energy companies, who use its services to manage driver behaviour and vehicles serving the North American exploration and production market.
Orbcomm says it will will expand Inthinc's core telematics services to its existing transportation and heavy equipment markets and broaden its global footprint through its widespread distribution channels.
"With a superior portfolio of telematics, Inthinc provides a solid entry point for Orbcomm into the vehicle fleet management market," said Marc Eisenberg, Orbcomm's chief executive officer. “Inthinc's offering complements and strengthens our existing transportation and heavy equipment product portfolio, allowing our customers to access a broader set of asset monitoring. By adding incremental vertical markets and telematics capabilities, the acquisition of Inthinc further solidifies Orbcomm's position as a leading full-service provider in the industrial internet of things."
Although most Inthinc customers are based in the USA, it also serves companies in Argentina, Australia, Canada, Chile, Columbia, Dominican Republic, Mexico, Papua New Guinea, Peru, Romania, South Africa and Tanzania. Many operate in remote regions supporting industrial facilities, which makes its dual-mode satellite and cellular product offerings suitable as they provide immediate verbal feedback and coaching for drivers as well as driver performance metrics regarding safety and speed limit compliance.
Users say they experience significant reductions in accidents as well as RoI-based savings in vehicle performance, fuel management and maintenance.
"We believe the increased scale in customer service, installation, engineering, sales, marketing, operations and supply chain that Orbcomm offers to Inthinc will support our immediate growth objectives," said Todd Follmer of Inthinc, who is joining Orbcomm as senior vice president of fleet management. “We look forward to leveraging Orbcomm's strong brand equity and global distribution network to accelerate the adoption of Inthinc's safety mentoring, which has produced dramatic safety improvements for Inthinc's global customers over the last ten years. This powerful combination of synergies and advanced technology will better enable us to meet our customers' fleet safety and efficiency goals and deliver our industry-leading products to a more diverse customer base around the world."
Orbcomm was advised by Raymond James on this transaction.