Intermec completes acquisition of Vocollect

Vocollect will broaden Intermec’s applications and solution offerings in the warehouse workflow and help to establish a leading position in software-oriented solutions.

By ·

Intermec, Inc.  today announced the successful completion of its previously announced acquisition of Vocollect, Inc., the industry-leading provider of voice-centric solutions for mobile workers worldwide. As announced on January 18, 2011, Joseph S. Pajer, Vocollect’s president, will report directly to Patrick J. Byrne, Intermec’s president and chief executive officer.  Vocollect will operate as a business unit of Intermec, and will remain located in Pittsburgh, Pennsylvania.

“This acquisition strengthens Intermec’s position as the leading provider of rugged mobile business solutions in the warehouse market,” said Mr. Byrne. “We are confident that the addition of Vocollect to our solutions portfolio will deliver great value for our customers, who are always looking to improve the accuracy, productivity and safety of warehouse operations and other strategic business systems.”

In Modern’s annual Top 20 Automatic Data Capture suppliers listing, Intermec was ranked No. 3 with $365 million reported revenue for 2009. Vocollect is ranked No. 14 with $85.5 million in reported revenue for 2009.

“The Vocollect team is very proud and excited to join Intermec,” said Mr. Pajer.  “In the past we have addressed important customer opportunities together, and now that Vocollect is a member of the Intermec family, together we will be able to offer the most integrated and comprehensive warehouse offering of mobile worker technology solutions in the industry.”

The aggregate all-cash purchase price was $190 million plus approximately $7 million of adjustments.  These costs were funded with $97 million from the Company’s recently amended $100 million, three-year, secured revolving credit facility, as well as a net $100 million from the Company’s balance sheet.  Deal related transaction and transition costs of $8 to $9 million incurred in fiscal year 2011 and any net working capital adjustment are expected to be funded with cash from the Company’s operations.

For the first quarter of 2011, but limited to the approximately four weeks following closing of the acquisition, the Company expects that Vocollect will add approximately $10 million to consolidated Intermec revenue, and that income before taxes attributable to Vocollect operations will be approximately breakeven, including the impact of approximately $1 million of amortization.  Transaction-related costs are expected to be $6 to $6.5 million in the first quarter.

The acquisition is expected to be accretive to Intermec’s GAAP earnings per share for the fiscal year by the end of 2011.

Intermec to acquire Vocollect
Vocollect will broaden Intermec’s applications and solution offerings in the warehouse workflow and help to establish a leading position in software-oriented solutions.

Looking behind the Intermec Vocollect acquisition
The acquisition will strengthen Intermec’s portfolio of warehouse solutions


Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

All Topics
Latest Whitepaper
Six Ways Cloud ERP Supports Rapid Innovation
Kenandy is a new approach to ERP that lets you and your team focus on driving innovation, creating new product lines, and expanding your customer base even as you improve your business operations.
Download Today!
From the November 2016 Issue
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL) provider that could successfully combine transportation services and technology capabilities under one roof.
Warehouse & DC Operations Survey: Ready to confront complexity
2016 Quest for Quality Awards Dinner
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Best Practices: How to Efficiently Leverage APIs to Increase Your Net Income
Both legacy and modern technology leaders agree that leveraging API connectivity is critical in keeping up with the pace of a world that demands not only speed and agility, but also a deep level of visibility. During this session a panel of technology and industry experts discuss impact APIs can have on annual net income and market capitalization.
Register Today!
EDITORS' PICKS
Logistics Management’s Top Logistics News Stories 2016
From mergers and acquisitions to regulation changes, Logistics Management has compiled the most...
Making the TMS Decision: Ariens Finds Just the Right Fit
The third time is the charm for this U.S. manufacturer on the hunt for a third-party logistics (3PL)...

Motor Carrier Regulations Update: Caught in a Trap
The fed is hitting truckers with a barrage of costly regulations in an era of scant profits....
25th Annual Masters of Logistics
Indecision revolving around three complex supply chain elements—transportation, technology and...