S&P Global to Acquire ORBCOMM's AIS Business to Strength Maritime Offerings
S&P Global agreed to acquire the Automatic Identification System (AIS) data services business of ORBCOMM in a move designed to strengthen its supply chain and maritime offerings. It points to the growing uncertainties in global supply chains saying the acquisition as well as a new equity position in ORBCOMM build on the complementary strengths to provide greater essential intelligence to customers.
ORBCOMM was one of the pioneers in AIS which S&P highlights is used today to track and monitor vessels, enhancing maritime visibility and delivering critical insights that support business intelligence and decision-making for government and commercial clients worldwide.
The standardized AIS system began to emerge in the 1990s and by the early 200s, the International Maritime Organization (IMO) was moving to mandate the use of AIS. It was first introduced for newbuilds and later required as retrofits to all ocean-going commercial vessels.
Since 2004, ORBCOMM's AIS vessel tracking technology has incorporated high-quality, proprietary data with satellite and terrestrial-based coverage. Its AIS solutions are utilized for diverse applications such as supply chain visibility, maritime safety, surveillance and security, environmental monitoring, regulatory compliance, and more.
"With the uncertainties surrounding global markets and supply chains, this strategic acquisition underscores our commitment to investing in differentiated data and solutions that can help our customers navigate the volatility," said Whit McGraw, Head of Risk & Valuations Services at S&P Global Market Intelligence. "ORBCOMM's AIS data services business offers cutting-edge technology and coverage that strengthens our energy transition and maritime supply chain offering, giving us ample opportunity to invest in new product innovations."
The financial terms of the transaction were not disclosed. ORBCOMM's AIS data services will be integrated within the S&P Global Market Intelligence division of S&P Global.
S&P Global also announced it has entered into an agreement to take a strategic equity position in ORBCOMM. The two organizations report they will create a strategic alliance to develop a range of differentiated supply chain data and insight offerings.
In addition to the maritime applications, ORBCOMM offers services dedicated to the overland transport sector as well as heavy industry. The company also offers satellite connectivity services and it is used by government as well as sectors such as natural resources.
The companies said the acquisition, which is subject to customary closing conditions, is expected to close during 2025.