We often complain about the tendency of Washington companies to put themselves up for sale rather than to build their companies. Well Intermec has just announced it plans to expand the capabilities of its rugged wireless devices by buying the leader in developing voice technology for mobile workers.
Intermec has been riding the mobile wave with its industrial strength devices that take advantage of the growing global wireless infrastructure to provide sophisticated mobile capabilities to delivery people and other workers on the go. Read about the vision of Intermec CEO Pat Bryne here.
The company's press release announcing the acquisition is below:
INTERMEC TO ACQUIRE VOCOLLECT, RAISES Q4’10 GUIDANCE
EVERETT, Wash – January 18, 2011 – Intermec, Inc. (NYSE: IN) today announced the Company has entered into a definitive agreement under which Intermec will acquire Vocollect, Inc., the industry-leading provider of voice-centric solutions for mobile workers worldwide. Vocollect is privately held by Riverside Partners, a Boston-based private equity firm and private investors. Both companies’ Boards of Directors have unanimously approved the $190 million all-cash offer.
With over 1,500 customers and 300,000 users globally, Vocollect will broaden Intermec’s applications and solution offerings in the warehouse workflow and help to establish a leading position in software-oriented solutions. The acquisition will also extend Vocollect’s voice solutions into the rapidly growing markets served by Intermec and its channel partners.
“This acquisition is a major step for Intermec in building a software-centric solutions business in the warehouse, the largest AIDC deployment environment,” said Patrick Byrne, Intermec’s president and chief executive officer. “For many years, Vocollect has built the premier set of voice-centric warehouse solutions and has achieved a strong global market leading position. The adoption of voice in the warehouse is developing rapidly and we expect this technology to provide significant long-term growth opportunities for Intermec. When combined with Intermec’s industry leading products and customer relationships, the acquisition will establish Intermec as a clear market leader in warehouse solutions and give us the talent and technology base for creating unique new market focused solutions in the AIDC industry.”
“We are excited about the combination with Intermec”, said Joe Pajer, Vocollect’s president and chief executive officer, “Working together, we believe we can accelerate the adoption of voice centric solutions on a global basis and create new innovative warehouse solutions capabilities for our customers and partners.”
Upon completion of the transaction, Joe Pajer will lead the Intermec Voice Solutions business and report to Patrick Byrne, Intermec’s president and chief executive officer.
KEY FINANCIAL HIGHLIGHTS
Intermec expects that its combination with Vocollect will accelerate the Company’s revenue growth above current market growth rate projections. Based on Vocollect’s unaudited financial statements for fiscal 2010:
§ We expect Vocollect’s 2010 revenues will approximate $120 million.
§ The Vocollect business is expected to deliver double digit future revenue growth.
§ In fiscal year 2011, upon completion, the transaction is expected to generate annual revenue synergies of approximately $10 million and is expected to be accretive to Intermec’s earnings per share.
TERMS OF AGREEMENT
Under the agreement, Vocollect will be merged with a wholly-owned subsidiary of Intermec. Vocollect stockholders will receive an aggregate cash purchase price of $190 million, subject to adjustment following closing. Completion of the transaction, which is expected to close in the first quarter of calendar year 2011, is subject to expiration or termination of the applicable Hart-Scott-Rodino waiting periods, and other regulatory and customary conditions as provided in the merger agreement.