Intermec acquires Vocollect for $190m
Intermec has acquired voice-centric solutions provider Vocollect after the companies agreed on a $190m all-cash offer. Vocollect – a provider of voice-centric solutions for mobile workers worldwide – is privately held by Riverside Partners, a Boston-based private equity firm and private investors.
As it stands, Vocollect boasts a customer list of 1,500 companies, with 300,000 users globally.
The acquisition will broaden Intermec’s applications and solution offerings in the warehouse workflow and help to establish a stronger position in software-oriented solutions. The move 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.”
Upon completion of the transaction, Joe Pajer, Vocollect’s president and chief executive officer, will lead the Intermec Voice Solutions business and report to Byrne.
Pajer added: “We are excited about the combination with Intermec. 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.”
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, Intermec expects Vocollect’s 2010 revenues will approximate $120m, as well as delivering double digit growth.
In fiscal year 2011, upon completion, the transaction is expected to generate annual revenue synergies of approximately $10m and is expected to be accretive to Intermec’s earnings per share.
Revenue for Intermec’s fourth quarter of 2010 is expected to be in the range of $196m to $199m, compared to its previously stated guidance of $180m to $190m.
