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Barr Ellison Solicitors – commercial property
12 June, 2020 - 21:14 By Tony Quested

$2.6m Michigan deal for 1Spatial

Cambridge location software business 1Spatial has won a $2.6 million five-year contract with the US State of Michigan.

The new deal builds on a relationship which began in 2018. It will see the State expand its use of 1Integrate, 1Spatial’s data management solution, and combine it with 1Data Gateway – 1Spatial’s newly launched portal – to provide an easy to use, automated data submission process for the validation and integration of spatial data from the local level up to the State. 

The contract comprises approximately $1.5m of services to be delivered in the first two years of the contract and $1.1m of software licences to be recognised over the five years.

The initiative forms an extension of the Michigan Geographic Framework, which created an official base map for State business needs. 

Over the next five years 1Spatial will be assisting the State with the move to the enterprise 1Integrate platform to support its Spatial Data Infrastructure (SDI) and to extend it to support such efforts as Next Generation 911 (NG911) for emergency management support. 

Establishing this robust platform will enable Michigan to provide all partners (both State and local) with a cohesive, integrated single-source of state-wide data. 

The ability to automate the submission and cleansing of location data submitted across the State by both State and local entities will enable government to have access to a more robust set of information to utilise for more informed decision support.   

Claire Milverton, CEO of 1Spatial, said: “This is a significant extension of our existing relationship with the State of Michigan, which will see our 1Data Gateway portal in use across hundreds of organisations, enabling the State to unlock further value from their location data.

“We believe this model is applicable across all the US States and we are excited to have secured this landmark customer so quickly after the launch of the portal in February this year. 

“The contract adds to our revenue visibility and underlines the size of the addressable market for our Location Master Data Management offering.” 

It’s been a good week for the Cambridge technology business; earlier it lifted revenue by 33 per cent to £23.4m in the year to January 31 with recurring revenue 30 per cent higher to £9.6m.

The company cut its operating loss slightly from £1.6m to £1.5m although the loss after tax was seven per cent higher to £1.5m.

1Spatial secured new customer wins in all territories including key deals in the UK, US and Europe. Its ‘land and expand’ strategy drove continued expansion of existing customer engagements including with Northern Gas Networks in the UK, Google and the California Department of Transport in the US and a large French water utility company. 

The board believes it has the resources to withstand the current challenging environment, caused by coronavirus and is on the right track to deliver sustainable growth at scale in the medium to longer term.

Milverton said: “This has been a year of strategic delivery and progress at 1Spatial, marking the successful completion of our three-year turnaround strategy and placing the group on a strong footing to capitalise on the growing demand for usable location-based data in our target industries and geographic markets.

“The year has seen good growth in our customer base, demonstrating the strength of our offering and providing the opportunity for additional expansion of these relationships in the year ahead. 

“As we transition to a repeatable solutions provider, seeking to unlock the value in location data, the potential to scale 1Spatial through our technical innovation is clear. 

“Key initiatives for the year ahead will be to build a sales pipeline for our LMDM solutions, continue to invest in innovation and explore further partner opportunities to expand our market reach. 

“We have a substantial order book of contracted future revenue, a wide range of customers in stable industry segments and a strong balance sheet.”

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