S&P Global agrees to acquire ORBCOMM's Automatic Identification System business, strengthening its supply chain and maritime offerings
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. ORBCOMM's AIS data services will be integrated within the S&P Global Market Intelligence division of S&P Global.
'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.'
S&P Global also announced it has entered into an agreement to take a strategic equity position in ORBCOMM. The two organizations will create a strategic alliance to develop a range of differentiated supply chain data and insight offerings, underscoring its commitment to further investing in this sector while helping customers navigate the complex maritime environment. The strategic alliance builds on the complementary strengths of S&P Global and ORBCOMM in global trade and logistics ecosystems. S&P Global's equity investment in ORBCOMM further emphasizes its commitment to this strategic alliance.
'We're excited to join forces with S&P Global to unlock new intelligence from our deep data resources and deliver new levels of intelligence to global supply chain stakeholders,' said Sameer Agrawal, CEO of ORBCOMM. 'Our AIS team looks forward to scaling their solutions with S&P Global, while we continue to sharpen our focus on ground-breaking smart supply chain visibility technology that serves the world's intermodal shipping ecosystem.'
The acquisition is subject to customary closing conditions, including receipt of certain regulatory approvals. It is expected to close during 2025 and financial terms of the transaction were not disclosed.
DLA Piper served as legal advisor to S&P Global. PJT Partners and Simpson Thacher & Bartlett served as financial and legal advisors, respectively, to ORBCOMM.
Forward-Looking Statements: This report contains 'forward-looking statements,' as defined in the Private Securities Litigation Reform Act of 1995. These statements, which express management's current views concerning future events, trends, contingencies or results, appear at various places in this report and use words like 'anticipate,' 'assume,' 'believe,' 'continue,' 'estimate,' 'expect,' 'forecast,' 'future,' 'intend,' 'plan,' 'potential,' 'predict,' 'project,' 'strategy,' 'target' and similar terms, and future or conditional tense verbs like 'could', 'may', 'might,' 'should,' 'will' and 'would.' For example, management may use forward-looking statements when addressing topics such as: the outcome of contingencies; future actions by regulators; changes in the Company's business strategies and methods of generating revenue; the development and performance of the Company's services and products; the expected impact of acquisitions and dispositions; the Company's effective tax rates; and the Company's cost structure, dividend policy, cash flows or liquidity.
Forward-looking statements are subject to inherent risks and uncertainties. Factors that could cause actual results to differ materially from those expressed or implied in forward-looking statements include, among other things:
worldwide economic, financial, political, and regulatory conditions (including slower GDP growth or recession, instability in the banking sector and inflation), and factors that contribute to uncertainty and volatility, natural and man-made disasters, civil unrest, public health crises (e.g., pandemics), geopolitical uncertainty (including military conflict), and conditions that may result from legislative, regulatory, trade and policy changes, including from the new US administration;
the volatility and health of debt, equity, commodities, energy and automotive markets, including credit quality and spreads, the level of liquidity and future debt issuances, demand for investment products that track indices and assessments and trading volumes of certain exchange traded derivatives;
the demand and market for credit ratings in and across the sectors and geographies where the Company operates;
the Company's ability to maintain adequate physical, technical and administrative safeguards to protect the security of confidential information and data, and the potential for a system or network disruption that results in regulatory penalties and remedial costs or improper disclosure of confidential information or data;
the outcome of litigation, government and regulatory proceedings, investigations and inquiries;
concerns in the marketplace affecting the Company's credibility or otherwise affecting market perceptions of the integrity or utility of independent credit ratings, benchmarks, indices and other services;
the level of merger and acquisition activity in the United States and abroad;
the level of the Company's future cash flows and capital investments;
the effect of competitive products (including those incorporating generative artificial intelligence ('AI')) and pricing, including the level of success of new product developments and global expansion;
the impact of customer cost-cutting pressures;
a decline in the demand for our products and services by our customers and other market participants;
our ability to develop new products or technologies, to integrate our products with new technologies (e.g., AI), or to compete with new products or technologies offered by new or existing competitors;
our ability to attract, incentivize and retain key employees, especially in a competitive business environment;
our ability to successfully navigate key organizational changes, including among our executive leadership;
the Company's exposure to potential criminal sanctions or civil penalties for noncompliance with foreign and U.S. laws and regulations that are applicable in the jurisdictions in which it operates, including sanctions laws relating to countries such as Iran, Russia and Venezuela, anti-corruption laws such as the U.S. Foreign Corrupt Practices Act and the U.K. Bribery Act of 2010, and local laws prohibiting corrupt payments to government officials, as well as import and export restrictions;
the continuously evolving regulatory environment in Europe, the United States and elsewhere around the globe affecting each of our businesses and the products they offer, and our compliance therewith;
the Company's ability to make acquisitions and dispositions and successfully integrate the businesses we acquire;
consolidation of the Company's customers, suppliers or competitors;
the introduction of competing products or technologies by other companies;
the ability of the Company, and its third-party service providers, to maintain adequate physical and technological infrastructure;
the Company's ability to successfully recover from a disaster or other business continuity problem, such as an earthquake, hurricane, flood, civil unrest, protests, military conflict, terrorist attack, outbreak of pandemic or contagious diseases, security breach, cyber attack, data breach, power loss, telecommunications failure or other natural or man-made event;
the impact on the Company's revenue and net income caused by fluctuations in foreign exchange rates; and
the impact of changes in applicable tax or accounting requirements on the Company.
The factors noted above are not exhaustive. The Company and its subsidiaries operate in a dynamic business environment in which new risks emerge frequently. Accordingly, the Company cautions readers not to place undue reliance on any forward-looking statements, which speak only as of the dates on which they are made. The Company undertakes no obligation to update or revise any forward-looking statement to reflect events or circumstances arising after the date on which it is made, except as required by applicable law. Further information about the Company's businesses, including information about factors that could materially affect its results of operations and financial condition, is contained in the Company's filings with the SEC, including Item 1A, Risk Factors in our most recently filed Annual Report on Form 10-K.
About ORBCOMM
ORBCOMM is a pioneer in IoT technology, empowering customers with insight to make data-driven decisions that help them optimize their operations, maximize profitability and build a more sustainable future. With 30 years of experience and one of the most comprehensive solution portfolios in the industry, ORBCOMM enables the management of over a million assets worldwide for a diverse customer base spanning transportation, supply chain, heavy equipment, maritime, natural resources and government. For more information about how ORBCOMM is driving the evolution of industry through the power of data, visit www.orbcomm.com.
About S&P Global
S&P Global (NYSE: SPGI) provides essential intelligence. We enable governments, businesses and individuals with the right data, expertise and connected technology so that they can make decisions with conviction. From helping our customers assess new investments to guiding them through sustainability and energy transition across supply chains, we unlock new opportunities, solve challenges, and accelerate progress for the world.
We are widely sought after by many of the world's leading organizations to provide credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help the world's leading organizations plan for tomorrow, today. For more information, visit www.spglobal.com.
S&P Global media contact
Amanda Oey
S&P Global Market Intelligence
+1 212 438 1904
amanda.oey@spglobal.com
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
3 hours ago
- Globe and Mail
Better Artificial Intelligence Stock: BigBear.ai vs. Nvidia
Key Points has become an AI investor darling over the past few years. Nvidia is the leading artificial intelligence semiconductor company. There's no substitute for high revenue growth and profitability -- and Nvidia has both. 10 stocks we like better than Nvidia › Many investors are focused on artificial intelligence stocks these days, which can be a smart play as AI transforms many industries. But it's starting to seem like any AI stock is a winner in the market right now, which means some investors may not be doing their due diligence when evaluating companies. With that in mind, two AI companies with surging share prices right now are Nvidia (NASDAQ: NVDA) and (NYSE: BBAI), and it may be worth taking a closer look at both to see which one looks like the better AI stock to buy right now. What's happening with Nvidia Nvidia gets top billing in this matchup because the company has experienced monster growth over the past few years as companies clamor for its artificial intelligence semiconductors. An estimated 70% to 95% of data centers utilize Nvidia's AI processors, and there seems to be no slowing down for the company's growth. For example, Nvidia's total sales soared 114% in fiscal 2025 to $130.5 billion, and its earnings skyrocketed 147% to $2.94 per share. This growth has been fueled by the company's data center segment, which experienced a 142% revenue surge to $115 billion last year. The impressive earnings and revenue growth have resulted in Nvidia's stock surging 57% over the past year. That's pushed the company's valuation higher, and Nvidia's shares currently have a price-to-earnings multiple of about 56. That's not cheap, but it's still lower than the average P/E ratio of 64 in the semiconductor industry right now. What's more, Nvidia could continue to benefit from AI investments for many more years to come. Nvidia CEO Jensen Huang believes AI will fuel $2 trillion in data center spending over the next several years. While Nvidia's growth isn't guaranteed, many tech giants have already committed to spending hundreds of billions of dollars to expand their AI data centers over the next few years. That's creating an ongoing opportunity for Nvidia to continue increasing its sales. What's happening with is an AI data analytics company that helps companies and the U.S. government sort through their data to make decisions. AI analytics is a burgeoning AI trend, and it has propelled the stock of similar companies, like Palantir, into the stratosphere. stock, for its part, has jumped 323% over the past year. But despite its impressive gains, there are some significant concerns I have with including its lack of strong revenue growth. sales increased just 5% in Q1 to $34.8 million, and management's outlook for the full year is for $160 million to $180 million -- an increase of just 7.5% at the midpoint. These are fairly unimpressive sales figures for a small AI company that's trying to tap into an expanding artificial intelligence analytics market. One of the company's problems is that 52% of its revenue comes from just four customers. That's a high concentration of sales from just a handful of customers, and it means that if one or two leave, could be in trouble. And then there's the company's lack of earnings. reported a loss of $1.10 per share last year and continued that trend with a loss of $0.25 per share in Q1. While many small start-ups often aren't profitable, it's problematic that the company's lack of earnings comes in addition to unimpressive sales growth. Meanwhile, stock has a price-to-sales ratio of 11, which is substantially higher than the average P/S multiple of 3 for the S&P 500 and means that investors are paying a premium for it right now. Verdict: Nvidia is the hands-down winner Nvidia's stock isn't cheap, and there are always risks with investing in AI stocks that have already experienced astronomical growth. But the company is a hands-down better investment than because it's massively profitable, continually expanding its revenue, and outpaces its rivals in the AI semiconductor market. Meanwhile, stock is overvalued, its revenue growth is unimpressive, and the company isn't profitable. This makes Nvidia the no-brainer in this matchup and one of the best AI stocks to buy and hold for the long term. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025
Canada News.Net
5 hours ago
- Canada News.Net
US, European stock markets tumble on Trump's tariff move; Amazon & Apple shares face heavy selling
New Delhi [India], August 2 (ANI): US stock markets faced heavy selling pressure on Friday (local US time) after President Donald Trump implemented fresh reciprocal tariffs on 70 countries, including India. The new tariffs have raised fears of rising inflation in the US, as imports will become more expensive and prices of goods sold in the country are expected to rise in the coming months. The major US stock indices witnessed sharp declines. The Dow Jones Industrial Average fell by over 1.2 per cent to close at 43,588.58, down by 542.40 points. The S&P 500 also dropped by 1.6 per cent, losing 101 points to settle at 6,238. The tech-heavy Nasdaq index tanked more than 2.2 per cent, falling by 472 points to close at 20,650. Several major US companies saw their share prices tumble. Amazon Inc. shares on the Nasdaq declined sharply by 8.27 per cent. Shares of tech giant Apple also dropped by 2.5 per cent, reflecting broad-based selling across the technology sector. In a major development, President Trump abruptly fired Dr. Erika McEntarfer, the head of the Bureau of Labor Statistics (BLS). Trump accused her of releasing 'fake' jobs data ahead of the 2024 US Presidential Election in an attempt to support Vice President Kamala Harris. In a social media post, Trump said, 'I was just informed that our Country's 'Jobs Numbers' are being produced by a Biden Appointee, Dr. Erika McEntarfer, the Commissioner of Labor Statistics, who faked the Jobs Numbers before the Election to try and boost Kamala's chances of Victory. This is the same Bureau of Labor Statistics that overstated the Jobs Growth in March 2024 by approximately 818,000 and, then again, right before the 2024 Presidential Election, in August and September, by 112,000.' Trump added, 'These were Records -- No one can be that wrong? We need accurate Jobs Numbers. I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY. She will be replaced with someone much more competent and qualified.' The panic in global markets extended to Europe as well. Germany's DAX index dropped by more than 2.7 per cent, while France's CAC index fell by 2.99 per cent, showing heavy selling pressure across European markets too. Investors remain concerned over the uncertainty triggered by Trump's tariff move and the possible economic consequences it could bring. (ANI)
Globe and Mail
7 hours ago
- Globe and Mail
Where Will Arista Networks Be in 1 Year?
Key Points Arista is benefiting from the rapid growth of the cloud and AI markets. But its dependence on big hyperscale customers is squeezing its gross margins. A lot of of its near-term growth is already baked into its premium valuations. 10 stocks we like better than Arista Networks › Arista Networks ' (NYSE: ANET) stock has rallied more than 50% over the past 12 months. It also trades less than 10% below its all-time high from this January. The computer networking company impressed investors with its robust growth rates and exposure to the booming cloud and AI markets. But will Arista's stock soar even higher over the next year, or is it due to take a breather? Let's review Arista's growth rates, its near-term catalysts, and its valuations to decide. Understanding Arista's business Arista controls a smaller slice of the networking market than Cisco Systems, but it differentiates itself from its bigger competitor in several key ways. Arista's modular operating system, EOS, is compatible with a wider range of open networking protocols than Cisco's systems, which are often known for locking its customers into its "walled garden." In addition, Arista focuses on selling lower-latency switches, which are optimized for hyperscale cloud networks, while Cisco bundles together a broader range of enterprise campus, branch, wide-area networking (WAN), and data center solutions. Arista's flexibility and scalability made it the preferred networking hardware and software provider for cloud and AI giants like Meta Platforms and Microsoft. Its CloudVision platform also helps those clients easily monitor and analyze their data center deployments. So while Cisco is still considered a "one stop shop" for big enterprise networking deployments, Arista is emerging as a higher-growth play on the expanding cloud and AI markets. From 2019 to 2024, Arista's revenue expanded at a compound annual growth rate (CAGR) of 24%. Its cloud and hyperscale markets continued to expand throughout the pandemic, and its tighter portfolio of products insulated it from the supply chain disruptions which impacted Cisco and other networking hardware companies. What happened to Arista over the past year? In 2025, Arista's revenue rose 19.5%, its adjusted gross margin rose 200 basis points to 64.6%, and its adjusted earnings per share (EPS) grew 31.2%. Here's how rapidly it grew over the past year. Data source: Arista Networks. YOY = Year over year. Arista's recent growth was largely driven by the rapid expansion of the cloud and AI markets. However, its gross margins are declining as it sells a higher mix of lower-margin, high-volume routers and switches to those big customers. It doesn't have much pricing power against those cloud titans, which often demand higher-volume discounts. At the same time, inflation, elevated interest rates, tariffs, and other macroheadwinds are driving its component and supply chain costs higher. By comparison, Cisco's adjusted gross margin expanded 30 basis points year over year to 68.6% in its latest quarter. Those higher margins reflect Cisco's stronger pricing power, which it reinforces through its aggressive bundling strategies. For the second quarter of 2025, Arista expects its revenue to rise 24.3% year over year as its adjusted gross margin dips to 63%. For the full year, analysts expect its revenue and adjusted EPS to grow 20% and 13%, respectively. Most of that growth should be driven by the growing adoption of its 800G Ethernet products for handling AI workloads. Where will Arista's stock be in a year? Arista is still growing rapidly, but it can't be considered a bargain at 50 times its trailing earnings. Cisco, which is growing at a much slower rate, trades at 28 times earnings. For 2026, analysts expect Arista's revenue and adjusted EPS to grow 18% and 17%, respectively, as the AI boom continues. If Arista matches those estimates and still trades at 50 times earnings, its stock price could rise more than 20% to $150 over the next 12 months. But if it trades at 30 times earnings, its stock could drop more than 25% to $90. Therefore, Arista's upside potential might be limited by its valuations over the next year as investors wait to see if its robust revenue growth can offset its declining gross margins. It might still eke out some modest gains, but it probably won't replicate its rally from the past 12 months. Should you invest $1,000 in Arista Networks right now? Before you buy stock in Arista Networks, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Arista Networks wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $624,823!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,064,820!* Now, it's worth noting Stock Advisor's total average return is 1,019% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 29, 2025
