1Spatial Plc – Placing, Acquisition & Agreement with Esri
1Spatial, the global geospatial software and solutions company, is pleased to announce that the Group has entered into two separate share purchase agreements to acquire the entire issued share capital of Geomap-Imagis Participations, for total consideration of €7.0 million. As at 6 May 2019, the business had net cash of approximately €1.9 million. In order to fund the cash element of the Consideration, 1Spatial also announces a placing to raise £3.1 million (gross) through the issue of 9,871,220 new ordinary shares in the capital of the Company at a price of 31.5 pence per share, a discount of approx. 5 per cent. to the closing middle market price on 7 May 2019.
Alongside and in conjunction with the Acquisition, 1Spatial France and 1Spatial Belgium (together, “1Spatial Europe”) has entered into a new partnership agreement with Esri Inc. (“Esri”) (the “Partnership Agreement”).
The Company believes that the Partnership Agreement, combined with the Acquisition, will be of significant benefit to the Company’s existing European customers in providing them with access to Esri’s market leading global GIS platform. In addition to being immediately earnings enhancing, the acquisition offers a combination of specialised vertical business applications and significant ‘know-how’ in the Group’s target sectors, which can be delivered through the combination of 1Spatial Europe and Geomap-Imagis.
HIGHLIGHTS
- New strategy for 1Spatial France and 1Spatial Belgium division, bringing alignment to the Group’s strategy to be a software-enabled solutions provider where location and geospatial data is key, with the goal to become a leader in Location Master Data Management
- Acquisition of entire share capital of geospatial software solutions company Geomap-Imagis for a total consideration of €7.0 million
- Geomap-Imagis offers strong strategic fit with the Group – the acquisition is highly synergistic and is expected to be immediately earnings enhancing
- New agreement signed with Esri, strengthening and broadening the ongoing Group’s global partnership with Esri and the distributor community
- Esri agreement offers 1Spatial Europe’s existing customers the benefit of access to Esri’s world leading GIS platform, while retaining the Group’s specialised business applications and extensive know-how
- Oversubscribed Placing to raise £3.1 million (gross) to partially fund the cash consideration due in respect of the Acquisition
Claire Milverton, CEO of 1Spatial, commented:
“We are delighted to announce this new partnership with our global partner Esri and the acquisition of Geomap-Imagis. The deal is immediately earnings enhancing and will significantly strengthen our customer proposition and align our French and Belgian businesses with the strategy of the wider Group as a solution provider with a focus on industry aligned business applications and Location Master Data Management.
Geomap-Imagis operates within 1Spatial’s existing markets and is an Esri Gold partner. The acquisition will provide a number of vertically focussed software business applications and will add a new vertical in Facilities Management, an area where we see great potential for our Location Master Data Management offering. We expect to be able to achieve a range of strategic synergies and it offers substantial land and expand potential, in-line with our stated strategy. We look forward to welcoming the Geomap-Imagis employees and customers to the Group”
Gilles Camus, Director General of Geomap-Imagis, commented:
“We are very pleased to have agreed the deal with 1Spatial, a company that has a customer base, technology platform and a cultural vision very similar to ours.
The deal with 1Spatial will give Geomap-Imagis the financial and organisational structure to grow in our current market in France as well as leverage our vertically focussed business applications globally”.
Jack Dangermond, CEO of Esri, commented:
“This agreement is great news for our continued global partnership and especially for our customers who will benefit from this deeper alliance. We are always looking for opportunities to bring the innovative capabilities of geospatial technology to a broader array of users, especially in growing areas like facilities management.”