Quoted Cambridge company 1Spatial in line for £87.1m sale to VertiGIS
AIM-quoted 1Spatial plc originally emerged from the ashes of Laser-Scan, the first tenant on Cambridge Science Park; the Laser-Scan business went bust in 2003.
So far the boards of 1Spatial and VertiGIS have just agreed in principle the key terms of what would be an all-cash deal but there seems little standing in the way of a march towards completion.
Under CEO Claire Milverton, 1Spatial is doing especially well across the United States and is also a strong player in the UK - an ideal cross-market profile for a North American buyer.
VertiGIS, steered from British Columbia, confirms that it has already completed commercial due diligence and has been sufficiently encouraged by the reception for an offer that it expects to go full speed ahead and lay the big bucks on the table.
The potential bid at 73 pence per 1Spatial share values the entire issued and to be issued ordinary share capital of the Cambridge company at approximately £87.1 million.
This represents a premium of approximately 57 per cent to the closing price of 46.5 pence per 1Spatial share on December 11 – the last business day prior to the revelation of a possible offer which has already received the support of 1Spatial's largest stakeholders representing, in aggregate, 33.8 per cent of the issued ordinary share capital.
VertiGIS has received irrevocable undertakings from Threadneedle Asset Management Limited and Columbia Threadneedle Management Limited, collectively 1Spatial's largest shareholder, to vote, or procure a vote, in favour of a firm offer. It looks like a done deal that just needs to be dusted.
The combination of VertiGIS and 1Spatial is compelling and could dominate the transatlantic geospatial software market.
1Spatial would operate as a key distributor of VertiGIS's products. The Board believes that alignment of product capabilities and customer bases would further support faster adoption of 1Spatial's technology and broaden international distribution.
The Board says it also recognises the potential benefits for stakeholders, including customers who rely on trusted, governed location data and employees who may benefit from the resources of a scaled geospatial platform.
VertiGIS parent Battery Ventures is a big punching heavyweight in anyone's book: It is a global, technology-focused investment firm with offices in the US, Europe and Israel. Battery invests across early venture capital, growth equity and buyout investments across the technology sector.
Currently investing from its 14th flagship fund, Battery Ventures XIV, and companion fund Select Fund II, the funds are together capitalised at a combined $3.8 billion. Battery has raised +$13bn since inception.
