Tuesday, December 22, 2009

Globalstar acquires SPOT Satellite GPS messenger and M2M device manufacturer Axonn

MILPITAS, USA: Globalstar Inc., a leading provider of mobile satellite voice and data services to businesses, governments and consumers, announced that it and its wholly owned subsidiary, Spot LLC, have acquired substantially all of the assets of Axonn, LLC. (Axonn).

Axonn is a leading developer and manufacturer of high quality and affordable satellite GPS asset-tracking and messaging products including Globalstar's award-winning consumer retail device, the SPOT Satellite GPS Messenger. Axonn also designs and markets enterprise products, which utilize the highly reliable Globalstar Simplex data network, including the AXTracker and SMARTONE asset-tracking solutions.

"This agreement is significant for it will effectively secure the critical long-term supply chain and associated intellectual property rights and technical design for the SPOT Satellite GPS Messenger retail consumer product as well as a number of Simplex data machine-to-machine (M2M) enterprise solutions," said Peter Dalton, CEO, Globalstar.

"With the economics of this acquisition, we expect to increase our equipment margin for the SPOT Satellite GPS Messenger by approximately 100 percent. We also expect that contracting directly with Simplex device manufacturers and working with Axonn's talented team of R&D, design and contract manufacturing personnel will enable Globalstar to deliver future innovative products, already planned for introduction, in a much more cost effective and timely manner."

Axonn is the designer and manufacturer of the STX2 Simplex data transmitter which is the world's smallest industrial-use satellite Simplex transmitter. The STX2 provides developers of asset tracking, data monitoring and messaging solutions with a small but affordable way to integrate Globalstar satellite data network connectivity into their product solutions. The STX2 is an integral piece of every current M2M Simplex data device that utilizes the Globalstar network.

Dalton continued: "Axonn's broad-ranging intellectual property and engineering expertise coupled with Globalstar's network capability provides us with the ability to offer developers, on an open-source basis, the technologies needed to integrate SPOT's proven messaging technology and global tracking into their M2M products. This agreement also provides Globalstar with the ability to directly deliver customized and affordable Simplex data hardware solutions to customers."

Globalstar and Spot LLC acquired certain assets and assumed certain liabilities of Axonn in exchange for $1.5 million in cash, subject to a working capital adjustment, $5.5 million in shares of the Company's voting common stock and up to an additional $11 million for earnout payments based on sales of existing and new products.

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