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 Modern Materials Handling magazine

Subscribe today. It's FREE!
Find out what the world's most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today!

Recent Entries

While staving off contraction in the previous four months, manufacturing in November did not grow, according to the most recent edition of the Institute for Supply Management’s (ISM) Manufacturing Report on Business.

FMA members, trade show exhibitors and other industry partners to benefit from on-site training and other industry events.

As cycle times shrink and order fulfillment systems operate in real-time, it's all about the algorithms.

First nine months concludes with 13% contraction in sales of machine vision systems, market expected to stay flat for next two quarters.

Leading manufacturer in the sensor sector partners with an international technology leader for independent image processing software.


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

© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA