1Spatial, a holding company "focused on improving the quality and access to business-critical location-data across the globe", is to acquire Lagen Spatial Pty Ltd.
The acquisition will be funded out of 1Spatial's working capital and will not result in any dilution of existing shareholder equity.
The total consideration paid by the company will be $1.0m, consisting of $765,000 in cash and $235,000 in clearance of existing Lagen loan liabilities. The consideration will be paid in three stages.
The transaction completes the third stage in 1Spatial's strategy to expand its presence in the Asia-Pacific region. Over the last three years the company has made a number of key sales of its software platform, Radius Studio, to public sector organisations across Australia. In the last year, two key employees have been placed in the country and, following this acquisition, the company says it “now has a solid foundation on which to develop its foothold”.
Lagen Spatial is a reseller for Safe Software, Pitney Bowes Business Insight (PBBI) and Trimble. It has a customer base of over 200 separate institutions and private sector companies across Australia.
The opportunity for 1Spatial is to develop this customer base as a route-to-market for the company’s software and services. The acquisition will leverage both Lagen's reputation for delivery and quality of service and the complementary relationships the company has with Safe, PBBI and Trimble.
