A London-listed geospatial collaboration and productivity software firm has made an £11 million international acquisition.
IQGeo, headquartered in Cambridge, has also raised £3.5m in a share placing.
The company has purchased COMSOF, a Belgian geospatial software company that builds and licenses fibre optic network planning and design software.
The enterprise value of the COMSOF is around €10m as the business had €3m of cash on the balance sheet when the deal was closed.
It is for an initial consideration of €10m, consisting of €8.85m in cash and €1.15m in new shares.
The remainder of the earn-out would be settled in cash.
COMSOF has a substantial customer base in the European telecommunications market and will create a continental European operations hub for IQGeo from its main office in Ghent, Belgium.
The acquisition is expected to accelerate sales in fibre optic design planning and design tools in high-value markets where nationwide fibre optic networks are being rolled out, such as North America, the UK and Germany.
For the 12 months ending 30th April 2022, COMSOF achieved total revenue of €7m, including recurring revenue of approximately 25%, and adjusted EBITDA of approximately €1.3m. It has around 100 clients.
“There is very significant demand for fibre planning and design solutions globally and the acquisition of COMSOF allows us to satisfy this demand with a world class product,” said Richard Petti, CEO of IQGeo.
“With the complementary technology and enlarged customer base, the COMSOF acquisition will strengthen our competitive differentiation and increase our market share and, following a short period of transition, will increase our recurring revenue base.”