Last checked at 3 Feb 2015 07:00
03 February 2015
1Spatial plc (AIM: SPA)
("1Spatial", the "Company" or the "Group")
Investment in USA-based provider of spatial data solutions
1Spatial, the global spatial software and solutions company which manages the world's largest spatial data, is pleased to announce that, 1Spatial Holdings Limited ("1Spatial Holdings"), its wholly owned subsidiary, has entered into a share purchase agreement (the "SPA") to acquire 47 percent (the "Holding") of the issued share capital of Laser Scan Inc ("LSI"), the USA-based provider of spatial data solutions, for cash consideration of US$2.25m (the "Transaction").
About Laser Scan Inc
LSI is the sole distributor of 1Spatial geospatial products and solutions across the Americas, which includes significant contracts with the US Census. In the year to 31 December 2013, LSI achieved net profit of US$0.9m on reported revenues of US$3.4m. The Transaction provides 1Spatial with long term security of its Americas distribution channel and ensures continuity of service to key customers.
As a partner of 1Spatial, LSI are familiar with the Group's core products and solutions with many of the employees retaining expert knowledge of the Company's technology. The Transaction will allow 1Spatial to have access to additional services and products to complement the business's existing capabilities, enabling scalability to grow and maximise opportunities across this significant market.
Under the terms of the SPA, 1Spatial Holdings has a call option (the "Call Option") to acquire the remaining 53 per cent. of LSI in two tranches, on 1 February 2016 and 2017, for total deferred consideration of US$2.55 million, payable in cash or satisfied by the issue of new ordinary shares in 1Spatial. If the Call Option is not exercised, the sole vendor of LSI has the right to buy-back the Holding for US$1.125m, being equivalent to 50 per cent. of the initial consideration payable pursuant to the Transaction.
Commenting on the transaction CEO of 1Spatial, Marcus Hanke, said:
"We are delighted to announce this transaction with Laser Scan Inc. As sole distributor of our products and services in the Americas region for many years, we have worked with LSI on many strategic accounts including US Census and Brazilian Army. This transaction will secure our reach into the Americas market and will act as a path to provide opportunities in many sectors including Government Departments, Homeland Security, Defence, and Utilities.
Mary Brauer-Cox and her team are very well respected in the market and we look forward to working with them to grow the business and service our customers to the highest level. We will be focusing on marketing and sales for significant customer acquisition and to grow market share.
Mary Brauer-Cox, President of Laser Scan Inc commented:
"Having had a solid partnership with 1Spatial over the years, we are excited about this transaction. It can be seen as a natural progression in the journey for Laser-Scan Inc and the growth of 1Spatial in the Americas market. We have strong knowledge of the 1Spatial Products and Services and see great growth opportunity across many sectors for their offerings. The synergy in this closer alignment will benefit our customers by providing them with the combined knowledge and expertise of the two companies."
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For further information, please contact:
1Spatial plc | 0203 427 5004 |
Marcus Hanke / Claire Milverton | |
FTI Consulting | 020 3727 1000 |
Matt Dixon / Alex Le May / Karen Tang | |
N+1 Singer | 020 7496 3000 |
Shaun Dobson / Lauren Kettle |
About 1Spatial
1Spatial provides the software solutions and services that manage the world's largest spatial big data. We work with users and creators of the largest geospatial databases on earth, helping them collect, manage, plan, maintain, publish and interpret location-specific information.
Our clients include National Mapping Agencies, Land Registries, utility and telecommunications companies, and government departments including emergency services, defence and census bureaus.
A leader in our field, we have over forty five years' experience and a record of continual innovation and development. Today, with an ever increasing reliance on spatial and location-critical data, demand for our expertise has never been greater.
To find out more, visit www.1spatial.com