IQGeo Group shares gained 7.4% to 134.8p in late afternoon trading on Friday, after the company announced its intended acquisition of Belgium firm COMSOF for a consideration up to €13 million.
IQ Geo Group launched a €4.1 million fundraise to help source finance for the geospatial software business.
The acquisition of COMSOF is reportedly set to expand IQ Geo Group’s next step into wide fibre networks, currently being rolled out across the UK, Germany and the US.
The agreement is set to be paid in €10 million initially, with €8.8 million in cash and the rest of the payment in paper.
IQGeo Group also confirmed brokerage firm finnCap would be selling 2.5 million shares to investors for 125p per share via an accelerated bookbuild, representing a small discount on closing price yesterday.
“There is very significant demand for fibre planning and design solutions globally and the acquisition of COMSOF allows us to satisfy this demand with a world class product,” said IQGEO Group CEO Richard Petti.
“The COMSOF team brings increased depth to our product and our organisation that further strengthens our position as a market-leading system of record with the functional depth and cloud-based scalability to significantly increase our market share in both our Enterprise and SMB markets.”
“With the complementary technology and enlarged customer base, the COMSOF acquisition will strengthen our competitive differentiation and increase our market share and, following a short period of transition, will increase our recurring revenue base. We look forward to welcoming COMSOF to the IQGeo Group.”
