1Spatial has agreed the terms of a 73p per share cash takeover by VertiGIS, a portfolio company of Battery Ventures, valuing the AIM-listed location data specialist at approximately £87.1 million.
The offer represents a 57% premium to the closing price of 46.5 pence on 11 December and a 51.5% premium to the three-month volume weighted average price.
The board is supporting the deal, and shareholders look to be on side. VertiGIS has secured backing from major shareholders representing 33.8% of the issued share capital.
Threadneedle Asset Management, 1Spatial’s largest shareholder with 17.7%, has provided irrevocable undertakings to support the deal, whilst Canaccord Genuity Asset Management, holding 16.1%, has issued a non-binding letter of intent.
The board acknowledged the company’s standalone prospects but considered the offer in light of challenging market conditions for UK small-cap technology firms and capital constraints.
1Spatial said its directors believe private ownership would allow the group to invest more in itself while freeing it from the shackles of an AIM listing.
As one of the UK’s most exciting listed small-cap tech firms, 1Spatial’s departure will be a blow to London’s junior markets.