Intermec to expand warehouse and mobility solutions breadth with acquisition of voice-based warehouse applications provider

Intermec to expand warehouse and mobility solutions breadth with acquisition of voice-based warehouse applications provider

Intermec last week announced it has entered into a definitive agreement to acquire Vocollect, voice-based warehouse applications provider.

Both the Boards of Directors of Intermec and Vocollect, which is privately held by Riverside Partners, a Boston-based private equity firm and private investors, have unanimously approved the $190 million (£118.75m) all-cash offer.

With over 1,500 customers and 300,000 users globally, Vocollect will broaden Intermec’s applications and solution offerings in the warehouse workflow software-oriented solutions. The acquisition will also extend Vocollect’s voice solutions into the growing markets served by Intermec and its channel partners.

Market-leading positioning

“This acquisition is a major step for Intermec in building a software-centric solutions business in the warehouse, the largest AIDC deployment environment,” said Patrick Byrne, Intermec’s president and chief executive officer. “For many years, Vocollect has built the premier set of voice-centric warehouse solutions and has achieved a strong global market leading position.

“The adoption of voice in the warehouse is developing rapidly and we expect this technology to provide significant long-term growth opportunities for Intermec. When combined with Intermec’s industry leading products and customer relationships, the acquisition will establish Intermec as a clear market leader in warehouse solutions and give us the talent and technology base for creating unique new market focused solutions in the AIDC [automatic identification and data capture] industry.”

“We are excited about the combination with Intermec”, said Joe Pajer, Vocollect’s president and chief executive officer. “Working together, we believe we can accelerate the adoption of voice-centric solutions on a global basis and create new innovative warehouse solutions capabilities for our customers and partners.”

Rosy financial outlook

Upon completion of the transaction, the companies said Joe Pajer will lead the Intermec Voice Solutions business and report to Patrick Byrne, Intermec’s president and chief executive officer.

Intermec also raised its financial guidance for the fourth quarter on the acquisition announcement. It said expects that its combination with Vocollect will accelerate the Cbmpany’s revenue growth above current market growth rate projections.

Based on Vocollect’s unaudited financial statements for fiscal 2010 it expects Vocollect’s 2010 revenues will approximate $120 million (£75m), while delivering “double-digit future revenue growth”.