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 is a Software-as-a-Service (SaaS) company focusing on digital mapping for indoor navigation. The two primary revenue streams are 1) MapsIndoors which is MapsPeople’s own developed mapping solution for indoor navigation 2) Google Maps partnership with Google. MapsIndoors is the key segment with high double-digit growth rates, and the Google Maps segment is expected to be a more steady business going forward. MapsPeople has a global presence with offices in Denmark, Germany, Singapore and United States, and customers include some of the largest brands in the world. The company has been listed at Nasdaq First North Premier in Denmark since June 2021.
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