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Posted on November 21, 2018 by staff

Tech group Ubisense eyes £35m disposal

Tech group Ubisense eyes £35m disposal

Ubisense chief executive Richard Petti
Ubisense chief executive Richard Petti

Ubisense, the AIM-listed group specialising in enterprise location intelligence solutions, has conditionally agreed to sell its RTLS SmartSpace business unit in a deal worth up to £35 million.

The Cambridge-headquartered firm is planning to sell the business to a company owned and controlled by funds managed or advised by Investcorp Technology Partners.

If the deal completes, Ubisense is proposing to change its name to IQGeo and become “a focused and well-funded geospatial software company” working with telecoms and utilities firms worldwide.

“This is an extremely positive change for both the RTLS SmartSpace and the IQGeo divisions which the Board believes is in the long-term best interests of both businesses,” said CEO Richard Petti.

“The proceeds will allow us to refocus and re-brand the retained business as IQGeo and to invest in its myWorld software business which has a significant market opportunity providing solutions to some of largest telecoms and utilities suppliers in the world.”

The deal, which is still subject to shareholder approval and other conditions, is expected to complete in December 2018.

Ubisense Group’s Geospatial myWorld business generated revenue of £16.5 million in 2017 while the RTLS SmartSpace business generated £10.8 million.

Petti added: “As I look ahead to the potential for IQGeo, I am excited about the prospect of building on the success of our myWorld enterprise software which has increased revenues by a CAGR of more than 35% since 2015.

“We have an excellent existing customer base across our target markets and a growing pipeline of new opportunities driven by worldwide growth in fiber broadband and 5G technology.

“From day one, the mission of the IQGeo team will be to build on existing foundations to create a global software business, with high levels of recurring revenues, high margins and strong cash flows”.

KPMG is acting as sole financial adviser to Ubisense Group with regard to the sale.