Intermec Inc. announced Tuesday that it will acquire Vocollect, a provider of voice-directed systems, from the Boston-based private equity firm Riverside Partners.
The boards of directors of both companies have approved the $190 million all-cash offer, according to a statement issued by the two companies. The parties expect to complete the deal by the end of the first quarter of this year. Once the transaction is completed, Vocollect will become a wholly owned subsidiary of Intermec.
Intermec offers rugged computers, data collection systems, bar-code printers, and other automatic identification and tracking devices. In announcing the deal, the company said it expects the Vocollect acquisition will broaden its warehousing and software-oriented offerings. In addition, it expects the merger to pave the way for the use of Vocollect's voice solutions in new markets.
"This acquisition is a major step for Intermec in building a software-centric solutions business in the warehouse," said Patrick Byrne, Intermec's president and chief executive officer, in a prepared statement. "The adoption of voice in the warehouse is developing rapidly, and we expect this technology to provide significant long-term growth opportunities for Intermec."
Joe Pajer, Vocollect's president and chief executive officer, said, "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."
Upon completion of the transaction, Pajer will lead the Intermec Voice Solutions business and report to Byrne.
Intermec expects the Vocollect business, which generated about $120 million in revenue in 2010, will grow at a double-digit pace. Intermec reported revenues of $379 million through the first three quarters of 2010, and expects fourth-quarter revenues will be in the range of $196 million to $199 million.