MapsPeople: Announces acquisition of Point Consulting's indoor mapping activities in line with M&A strategy
This afternoon, MapsPeople announced the acquisition of Point Consulting’s indoor mapping activities, which implies that MapsPeople only acquires customer contracts and associated technology from the company. This acquisition is in line with MapsPeople’s new M&A strategy which was announced in connection with the successful capital raise, completed in September 2024.
The acquired customer contracts include 17 customers, predominantly airports, which will be transferred to MapsPeople. Additionally, MapsPeople will also get a set of underlying technology components. As part of the transaction, Point Consulting Pte. Ltd. will also become a reselling partner for MapsPeople’s core product, MapsIndoors.
Financially, the transaction will add a minimum of DKK 2.1m to MapsPeople’s ARR, however, the impact on revenue and EBITDA is minimal in 2024. Since no employees will transition to MapsPeople, the acquired business activities have a 75% EBITDA margin. Looking into 2025, the revenue effect is DKK 2.1m before potential upsell/expansion and will have an impact on both EBITDA and cash flow from operations of DKK 1.6m.
The transaction price amounts to DKK 5.3m (approx. 2.5x ARR) where 80% (DKK 4.2m) will be paid in cash, and 20% will be paid in new MapsPeople shares (DKK 1.1m). The number of new shares is determined by the average share price of the 5 days before closing. Additionally, Point Consulting will be entitled to a cash earn-out of up to DKK 1.8m and a share-based earn-out to a value of DKK 1.0m. As a result, the maximum value for the transaction amounts to DKK 8.1m (approx. 3.8x ARR).
The transaction has been signed today, and closing is expected to be in November 2024 according to today’s announcement from MapsPeople.
Read the full announcement here: https://www.inderes.dk/releases/mapspeople-as-announcement-acquisition-of-point-consultings-pte-ltd-indoor-mapping-activities
Disclaimer: HC Andersen Capital receives payment from MapsPeople for a Digital IR/Corporate Visibility subscription agreement. /Kasper Lihn 17:00, 23 October 2024.
MapsPeople
MapsPeople är verksamt inom IT-sektorn. Bolaget är specialiserat inom utveckling av SaaS-lösningar. Programvaran är egenutvecklad och används huvudsakligen för navigering i stora kontorsbyggnader, sjukhus, arenor och universitet. Bolaget har utvecklat sin egen inomhuskarta och navigationsplattform, MapsIndoors, som bolagets kunder använder i sina egna appar och andra system på global nivå.
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