MapInfo Corporation Acquires Southbank Systems Limited 9.13.04
MapInfo Corporation announced that it has acquired all of the shares of privately-held, Southbank Systems Limited, a provider of infrastructure management software and services solutions for the public sector in the United Kingdom and the Asia-Pacific region, for approximately â¤11.7 million (approximately $20.8 million) in cash, subject to a working capital adjustment. With its headquarters in Chatham, England, Southbank Systems also has operations in Scotland, Australia and New Zealand.
The acquisition will strengthen the company's offering to the public sector, one of its targeted vertical markets, with the addition of enhanced location-enabled applications focused on addressing the asset management needs of local government organizations. Southbank Systems has developed strong relationships with such organizations and has a deep understanding of these organizations' needs. By leveraging Southbank Systems' domain knowledge and targeted applications, MapInfo expects the acquisition will create sales opportunities for its broader portfolio of offerings, including MapInfo Envinsa, its comprehensive location intelligence platform.
MapInfo anticipates that this acquisition will be accretive immediately and will generate between $13 to $14 million in revenues and approximately $0.04 in earnings per share in the fiscal year ending September 30, 2005. The projected earnings per share includes estimated costs resulting from the acquisition, such as the amortization of intangibles and other integration related expenses.
Founded in 1987, Southbank Systems develops and delivers complete infrastructure management solutions to many organisations primarily in the United Kingdom and in the Asia-Pacific region. Southbank Systems' primary offering is Confirm, a proven and scalable modular infrastructure management solution that enables the management of roads, bridges and structures, parks and open spaces, streetlights and signs, trees and property. By tracking, modifying and analysing data about a customer's portfolio of assets, better decisions can be made about future investments in that network (maintenance, refurbishment, acquisitions and disposals) and day-to-day operation and management is made more effective. Southbank Systems also provides integrated solutions to meet the construction planning requirements of utility companies, highway authorities and private contractors with respect to underground infrastructure in specific areas.
Southbank Systems' revenues for calendar year 2003 were approximately $12.0 million with an operating profit of approximately $4.2 million, for a 35 percent operating margin. The majority of Southbank Systems customers are local governments and contractor agencies that service these governmental entities. Southbank Systems has 74 employees.
MapInfo Corporation is a global company that integrates software, data and services to help organizations realize greater value from location-based information and drive more insightful decisions. MapInfo solutions are available in 20 languages through a network of strategic partners and distribution channels in 60 countries.
Source: MapInfo, Sept. 8, 2004