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 Modern Materials Handling Staff
March 04, 2011 - MMH Editorial

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!

Recent Entries

Working with research partner, The Economist Intelligence Unit, the IBM Institute for Business Value surveyed 1,023 global procurement executives from 41 countries in North America, Europe and Asia.

U.S. Carloads were down 7.8 percent annually at 259,544, and intermodal volume was off 15.7 percent for the week ending February 21 at 213,617 containers and trailers.

The Department of Transportation’s Bureau of Transportation Logistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement partners Canada and Mexico in December 2014 was up 5.4 percent annually at $95.8 billion. This marks the 11th straight month of annual increases, according to BTS officials.

While the volume decline was steep, there was numerous reasons behind it, including terminal congestion, protracted contract negotiations between the Pacific Maritime Association and the International Longshore and Warehouse Union, and other supply chain-related issues, according to POLA officials.

Truckload rates for the month of January, which measures truckload linehaul rates paid during the month, saw a 7.9 percent annual hike, and intermodal rates dropped 0.3 percent compared to January 2014, which the report pointed out marks the first annual intermodal pricing decline since December 2013.

Article Topics

News · Technology · Voice · Automatic Data Capture · ADC · All topics

Comments

Post a comment
Commenting is not available in this channel entry.