IQGeo agrees $8.75m acquisition of US software business
Quoted Cambridge company IQGeo has agreed to pay $8.75 million for US software operator OSPInsight International, Inc.
The deal promises IQGeo a taste of honey in the Beehive State of Utah from where OSPInsight has created a buzz internationally.
AIM-listed IQGeo provides geospatial productivity and collaboration software for the telecoms and utility industries. It has raised £5m towards the acquisition which will be funded through a mix of cash and shares.
Completion of the deal is subject to final shareholder approval.
The OSPInsight fibre planning and design software for the telecoms market is highly complementary with IQGeo’s own geospatial software that also supports telecoms network operations.
While the current IQGeo offering targets larger enterprise network deployments (tier 1 and tier 2 operators), the OSPInsight software is ideally suited for the needs of smaller networks (tier 3 and tier 4 operators) with simple, fast deployments.
The combination of the two product lines, as well as the telecoms industry and software technology expertise, will enable IQGeo to service an expanded target market in existing and new geographies.
Richard Petti, CEO at IQGeo said: “The entire IQGeo team is very excited about the business and technology potential that will be created by the acquisition of OSPInsight.
“With more than 25 years of industry experience, they have developed an excellent product line and established an impressive list of customers, while building a very strong reputation in the telecoms industry.
“We see this as a fantastic opportunity that provides IQGeo with a proven software solution and sales channel for tier 3 and tier 4 network operators and it gives the OSPInsight team the global reach and financial resources needed to take their software to a wider audience.”
His counterpart at OSPInsight, Wade Anderson, added: “The real winners in this acquisition will be OSPInsight customers; they will continue to enjoy the same level of support they’ve always had and have a greatly expanded product line for additional network management solutions.
“Existing and future OSPInsight customers will quickly have access to IQGeo’s industry-leading mobile software that digitises field operations to improve network data quality and currency.
“The two product lines dovetail very nicely. I’m excited for the shared vision of providing world-class software that helps our telecoms customers transform their network operations. We can’t wait to get started.”