Intermap Technologies has signed a definitive agreement to acquire the remaining shares of PCI Geomatics Group that it does not already own for $11 million in cash. Intermap currently owns all of PCI’s Series B preferred shares and approximately 3.3% of its common shares.
PCI President and CEO June McAlarey will remain in her current role and also become an Executive Vice President at Intermap with responsibility for the combined company’s commercial business.
PCI, which operates commercially as CATALYST, develops software for processing satellite and aerial imagery.
Its portfolio includes more than 750 proprietary algorithms delivered through cloud-based services. The technology supports imagery from more than 500 satellites and is embedded in thousands of commercial, government and defense workflows.
Intermap provides three-dimensional elevation data and AI-powered geospatial analytics.
The acquisition will combine PCI’s image-processing capabilities with Intermap’s elevation models, mapping technology and analytics. The companies intend to create a vertically integrated system capable of converting raw satellite and aerial imagery into decision-ready geospatial intelligence.
Potential applications include infrastructure monitoring, insurance underwriting, navigation, transportation, vegetation management, military situational awareness, object detection and remote targeting.
Approximately 60% of the combined company’s expected revenue would come from recurring commercial subscriptions and repeat contracted licenses.
Intermap expects the acquisition to immediately increase commercial revenue growth, EBITDA, earnings and cash flow. These projections remain subject to execution and integration risks.
The boards of both companies unanimously approved the transaction.
PCI shareholders representing approximately 81.25% of the shares eligible to vote, excluding shares owned by Intermap, have signed voting support agreements.
Closing requires approval from at least two-thirds of votes cast by PCI shareholders, approval from a majority of disinterested shareholders, court approval and satisfaction of customary conditions.
Support: Stifel is serving as Intermap’s financial advisor, while Norton Rose Fulbright Canada is providing legal counsel. KPMG Corporate Finance is advising PCI, and Blake, Cassels & Graydon is serving as its legal counsel.
KEY QUOTES:
“This acquisition represents a significant milestone in Intermap’s strategy to build the world’s leading platform for geospatial intelligence.”
“As demand shifts toward automated and autonomous geospatial intelligence and AI-powered decision support, Intermap is positioned to create lasting value for customers and shareholders.”
Patrick A. Blott, Chairman and CEO of Intermap Technologies
“Together, we reduce the time from sensor collection to produce actionable intelligence across land, air, sea and space for decision-makers, while expanding our own recurring revenue and strengthening our leadership across the Earth observation value chain.”
June McAlarey, President of PCI and Executive Vice President of Intermap
