CalAmp Is Priced For Perfection
Sean McKee • 26 Comments
Sean McKee • 26 Comments
Mon, Mar. 21, 4:39 PM
- CalAmp's (NASDAQ:CAMP) $134M ($6.45/share) purchase of well-known vehicle-tracking equipment and service provider LoJack (NASDAQ:LOJN) is now official. The company indicated last week a deal was close, following a successful tender offer.
- CalAmp also says it now expects to report FQ4 (February quarter) revenue of $71M, below prior guidance of $73M-$78M and a $75.9M consensus. EPS guidance is now at $0.32, at the high end of a prior $0.28-$0.32 range and a $0.30 consensus.
- CEO Michael Burdiek: "[FQ4] revenue was lower than expected, primarily due to MRM product supply constraints and the slow responsiveness of a supply chain partner following the Chinese New Year. This situation was exacerbated by irregular order flow for MRM products following the year-end holidays. These factors prevented us from fulfilling approximately $3.5 million in product orders in the quarter. We expect to fulfill the majority of this past due backlog in [FQ1]."
- Preliminary FQ1 guidance is for revenue of $86M-$94M. That's officially above a $75M consensus, but includes ten weeks of LoJack sales. Satellite revenue is expected to drop by $3M Q/Q; datacom revenue from a key heavy equipment OEM client (Caterpillar) "is expected to settle into a normalized quarterly run rate in the range of between $7 to $8 million, down somewhat from an exceptionally strong [FQ4]."
- CalAmp is down 6.3% after hours to $18.01. FQ4 results are expected on April 19.
Tue, Mar. 15, 10:06 AM
- Six weeks after announcing it's buying vehicle tracking hardware and service provider LoJack (LOJN -0.2%) for $134M ($6.45/share) in cash, CalAmp (CAMP -1.6%) says it has finished a tender offer that (together with shares already owned) has left it owning 80.2% of LoJack's common stock.
- CalAmp is launching a subsequent offer period to allow remaining LoJack holders to tender their shares. It expires at the end of Thursday. If CalAmp owns more than 90% of LoJack shares following the subsequent offer, or following the exercising of a top-up share-purchase option, the company will carry out a "short-form merger" with LoJack without the need for a LoJack shareholder vote.
- LoJack trades just a penny below CalAmp's buyout price.
Mon, Feb. 1, 4:05 PM
- CalAmp (NASDAQ:CAMP) is acquiring LoJack (NASDAQ:LOJN) for $0.95/share more than what it originally offered to acquire the company for in December.
- The all-cash deal is expected to close in CalAmp's FQ1 (ends in May). With LoJack's help, CalAmp forecasts FY17 (ends Feb. '17) revenue of more than $400M. LoJack is expected to contribute $0.15-$0.25 to FY17 EPS.
- CalAmp: "By combining with LoJack, we expect to enhance our ability to deliver novel connected vehicle telematics technologies and applications to our global customers. Moreover, we believe that LoJack's considerable relationships, particularly in the U.S. auto dealer channel, as well as in the commercial space with heavy equipment providers and their international licensee footprint, will create new opportunities for growth and strengthen our competitive position."
- Update (4:49PM ET): The post has been updated to provide more details about the acquisition. LoJack is up 18.3% after hours to $6.34 ($0.11 below CalAmp's buyout price).
Dec. 10, 2015, 7:55 AM
- CalAmp (NASDAQ:CAMP) says it has made an offer to acquire LoJack (NASDAQ:LOJN) for $5.50/share in cash, a 58% premium over LOJN's closing price yesterday in a deal valued at ~$113M.
- CAMP CEO Michael Burdiek says his company has attempted to engage in talks with LOJN on a deal for nearly two years and has made three all-cash offers that were rejected.
- Burdiek says a combination "would create a market leader that is well-positioned to drive the broad adoption of vehicle telematics technologies and applications worldwide."
- CAMP +2.7% premarket, LOJN halted.
Apr. 20, 2015, 7:11 PM
- Ahead of tomorrow's FQ4 report, CalAmp (NASDAQ:CAMP) announces it has bought Crashboxx, a startup working on "insurance telematics applications across the entire auto insurance lifecycle, from driver risk assessment through claims processing automation." The company is paying $1.5M in cash up-front + earn-outs based on post-acquisition sales targets.
- CalAmp: "[Crashboxx's] proprietary driver behavior, crash detection, crash notification and physical and bodily damage estimation technologies are extraordinarily unique within the emerging insurance telematics marketplace. Innovations including automated first notification of loss and near real time estimation of damages and bodily injury could drive significant business efficiencies and [ROI] for both insurance carriers and fleet managers."
- Though the Industries page on CalAmp's site currently lists 11 different verticals for which it provides telematics, fleet-tracking, and asset/device management solutions, insurance isn't one of them.
Mar. 12, 2015, 6:02 PM
- 2lemetry's cloud-based platform serves as middleware for large networks of Web-connected embedded devices - the proverbial Internet of Things (IoT). It translates the various protocols used by connected devices, sets messaging rules, and analyzes the data traffic it handles to derive insights.
- The startup boasts its solution can work with any protocol or hardware platform, automatically add new devices as they join a network, and scale to millions of devices without hurting performance. Honeywell is among the company's enterprise clients.
- Amazon (NASDAQ:AMZN) has bought 2lemetry for an undisclosed sum, and says it will continue supporting the company's clients. 2lemetry's services appear to complement AWS' Kinesis service, which provides real-time processing for massive data streams, including for data produced by IoT devices and sensors.
- TechCrunch notes 2lemetry's Incoming service might particularly interest Amazon - it helps companies (such as retailers) interact with customers using data obtained via proximity beacons, geofencing, facial recognition, and other sources.
- Though better known for their machine-to-machine (M2M) communications hardware, Sierra Wireless (NASDAQ:SWIR) and CalAmp (NASDAQ:CAMP) are two companies that have been going after the budding IoT service market. Sierra recently bought M2M connectivity/messaging service provider Wireless Maingate, and CalAmp has launched its Connect service platform for deploying and managing M2M devices.
Dec. 18, 2013, 6:05 PM
- CalAmp (CAMP) has acquired Radio Satellite Integrators (RSI), a provider GPS-based vehicle tracking and other data services (made accessible through a cloud software platform) to city and county agencies, for $6.5M in cash + performance incentives. (PR)
- RSI had revenue of $5M over the last 12 months, and was profitable. CalAmp states the deal improves its lineup of public safety solutions for state and local agencies.