Proving the Business Case for the Internet of Things

Orbcomm acquires Skygistics to extend African footprint

Steve Rogerson
April 19, 2016
M2M satellite company Orbcomm is to acquire Skygistics and its South African and Australian subsidiaries. Based outside of Johannesburg, South Africa, Skygistics provides satellite and cellular connectivity options as well as telematics products centred around the management of remote and mobile assets to more than 250 telematics and enterprise customers.
Skygistics will add distribution for Orbcomm’s broad range of products in some of the fastest growing IoT markets, including South Africa and 22 other African nations.
“The acquisition of Skygistics supports Orbcomm’s long-term strategy of becoming a leading global, full-service provider in the internet of things,” said Marc Eisenberg, Orbcomm’s chief executive officer. “Adding incremental products and services to Skygistics’ infrastructure will build a stronger presence on the African continent, which is an important growing market.”
Skygistics is a long-time partner of SkyWave, a subsidiary of Orbcomm, and a distributor of SkyWave’s satellite connectivity products. Satellite connectivity is used widely in Africa for cost-effective, mission-critical cross-border security monitoring and asset management applications.
“Orbcomm provides Skygistics with the breadth of products, support and technical resources needed to make a greater impact in the African telematics market,” said Kevin Eborall, Skygistics’ chairman. “We expect to more fully meet our customers’ requirements and vastly grow the business through the distribution of industry-leading transportation, heavy equipment and a host of other services in this underserved region. The strength of the Orbcomm brand combined with Skygistics’ regional footprint and technology make this transaction a great fit.”
Skygistics has more than 40 employees with an established sales and distribution network throughout Africa. The transaction is expected to close in May 2016, subject to customary closing conditions. Orbcomm was advised by Near Earth LLC on the transaction.