(RTTNews) - Intermap Technologies Corp. (IMP.TO), a geospatial intelligence company, announced Wednesday that it has entered into a definitive arrangement agreement to acquire all the remaining issued and outstanding shares of PCI Geomatics Group Inc. for $11 million in cash.
Intermap has an existing ownership position in the company's Series B Preferred Shares and 3.3 percent of common shares. The acquisition consolidates ownership and advances Intermap's strategy to build a leading geospatial intelligence platform.
Following the acquisition, June McAlarey, President and CEO of PCI, will continue in her current role and assume duties as Intermap Executive Vice President, responsible for commercial business.
The combination integrates PCI's satellite and aerial image processing capabilities with Intermap's commercially available digital elevation models. Customers will gain access to automated, near real-time, AI-powered GEOINT analytics at mapping-grade global-scale through an integrated, secure as-a-service or on-premises sensor-to-user platforms.
Approximately 60 percent of pro forma revenue is expected from recurring commercial subscriptions and repeat contracted licenses, strengthening revenue visibility and increasing exposure to scalable, high-margin software and analytics services. The acquisition is expected to be immediately accretive to commercial revenue growth, EBITDA, earnings and cash flow.
A special meeting of PCI shareholders will be held to vote on the arrangement.
Intermap's stock closed trading at C$1.07, up 4.90 percent on the Toronto Exchange.
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