Cambridge, 01 December 2020 - IQGeo (AIM: IQG), a developer of geospatial productivity and collaboration software for the telecoms and utility industries, today announced a successful fundraise of £5.0 million and the acquisition of OSPInsight International, Inc. Under the terms of the agreement IQGeo will purchase OSPInsight for $8.75m which will be funded through a mix of cash and shares. The completion of the acquisition is subject to shareholder final approval.
The OSPInsight fiber planning and design software for the telecoms market is highly complementary with IQGeo’s own geospatial software that also supports telecoms network operations. While the current IQGeo offering targets larger enterprise network deployments (tier 1 and tier 2 operators), the OSPInsight software is ideally suited for the needs of smaller networks (tier 3 and tier 4 operators) with simple, fast deployments. The combination of the two product lines, as well as the telecoms industry and software technology expertise, will enable IQGeo to service an expanded target market in existing and new geographies.
Richard Petti, CEO at IQGeo said. “The entire IQGeo team is very excited about the business and technology potential that will be created by the acquisition of OSPInsight. With more than 25 years of industry experience, they have developed an excellent product line and established an impressive list of customers, while building a very strong reputation in the telecoms industry. We see this as a fantastic opportunity that provides IQGeo with a proven software solution and sales channel for tier 3 and tier 4 network operators and it gives the OSPInsight team the global reach and financial resources needed to take their software to a wider audience.”
“The real winner in this acquisition will be OSPInsight customers,” explained Wade Anderson, CEO at OSPInsight. “Our customers will continue to enjoy the same level of support they’ve always had and have a greatly expanded product line for additional network management solutions. Existing and future OSPInsight customers will quickly have access to IQGeo’s industry-leading mobile software that digitizes field operations to improve network data quality and currency. The two product lines dovetail very nicely. I’m excited for the shared vision of providing world-class software that helps our telecoms customers transform their network operations. We can’t wait to get started.”
You can learn more about the acquisition announcement in the FAQs below and visit the IQGeo Investor page to view a video interview with Richard Petti, IQGeo’s CEO and Haywood Chapman, IQGeo’s CFO.
1. Why has IQGeo acquired OSPInsight?
The IQGeo and OSPInsight businesses are extremely complementary and both organizations are very excited about this opportunity. IQGeo has a successful subscription-based software business that sells its solutions to tier 1 and tier 2 telecoms and utility network operators. OSPInsight has a 25-year track record serving the tier 3 and tier 4 telecoms market with their fiber management software. Together the combined solution allows IQGeo to address the entire telecoms network operations market, leveraging the proven technology, brand recognition, and business relationships from both organizations.
2. What are the terms of the acquisition and how will it be funded?
IQGeo will pay $8.75m to acquire OSPInsight which will be funded through a mix of cash and shares. To pay for it IQGeo will be doing a fundraise which means our current cash position will not be affected by the acquisition.
3. Why is the acquisition beneficial for OSPInsight and IQGeo?
This acquisition is a very exciting opportunity that will have significant technical and business benefits for both organizations. IQGeo is now larger with a combined customer base, has a broader market reach and has an increased subscription revenue base. The technology and industry experience across both organizations will be shared and the OSPInsight team will benefit from the financial and operational support of IQGeo’s global infrastructure.
4. Will the OSPInsight management team move to IQGeo?
Yes. To ensure business and technical continuity the executive management of OSPInsight will take on senior roles within IQGeo.
5. Will the OSPInsight and IQGeo products be merged together?
Both the OSPInsight and IQGeo products will continue to be supported and maintained as separate software solutions serving two different market requirements. Naturally, the new organization will seek to take advantage of operational synergies particularly around R&D and domain knowledge. Additionally, IQGeo will be offering its mobile field software solution to OSPInsight customers.
6. How will the OSPInsight software products fit into the IQGeo product portfolio?
The OSPInsight products will be operated as a separate business to support existing customers and target new tier 3 and tier 4 regional telecoms network operators. As such the OSPInsight products will sit along-side the existing IQGeo enterprise software to provide solutions that match the unique requirements of both market areas. The OSPInsight products are perfectly suited to match the restricted budgets and IT resources of smaller network operators and IQGeo will invest in growing the market share for these products.
7. Will the OSPInsight company and product branding change?
The OSPInsight corporate and product brands will remain in place, leveraging the strong reputation established over 25-years of operation. The OSPInsight website will also continue to operate independently to service the fiber planning requirements of tier 3 and tier 4 network operators. To provide ownership transparency, the only immediate change to the OSPInsight corporate brand will be the addition of the phrase “an IQGeo company”.
8. How will the acquisition impact IQGeo customers and partners?
This acquisition will have a very positive impact on existing IQGeo customers and partners. Because the two product lines service different market requirements, smaller network operators will now have the flexibility to deploy the OSPInsight software if it is more appropriate for their technical and financial requirements. Larger network operators and existing partners can continue to use the enterprise IQGeo solutions. Over time, the sharing of industry and technical knowledge will act to improve the innovation and quality of all the products in the IQGeo portfolio.
9. How will the acquisition impact OSPInsight customers and partners?
This acquisition will have a very positive impact on OSPInsight customers and partners. The popular OSPInsight products will be supported and customers can be assured that their technology strategy can continue uninterrupted. In the medium-term OSPInsight customers will also be given the ability to purchase and deploy IQGeo’s award-winning mobile software to support field operations for staff and contractors, driving even greater transformation for their business. Customers and partners can be confident that their OSPInsight software is now part of a larger, global IQGeo organization that has a clear focus on the telecoms industry and a secure financial and operational foundation.
10. Who do I contact if I have questions about IQGeo’s acquisition of OSPInsight?
Please feel free to contact any IQGeo or OSPInsight staff that you may already work with or have worked with in the past. If they cannot answer your questions, they will make sure you are put in contact with the most appropriate individual. If you do not have an existing relationship, please get in touch using the contact us form and we will endeavor to promptly address your enquiry.
IQGeo’s end-to-end geospatial software improves productivity and collaboration across enterprise planning, design, construction, maintenance and sales processes for telecoms and utility network operators. Our mobile-first enterprise solutions create and maintain, an accurate view of complex network assets that is easily accessible by anyone, wherever and whenever needed.
Specialized applications combined with our open IQGeo Platform help network operators create a single source of network truth to meet their digital transformation ambitions and operational KPIs. Our award-winning, cloud-enabled solutions save time and money, and improve safety and productivity, while enhancing customer satisfaction.
About OSPInsight International, Inc.
With over 25 years of experience, OSPInsight has created a platform to plan, design, build, and operate a better fiber optic network. Built by OSP engineers, OSPInsight, at its core, is built for streamlined fiber documentation. If you find yourself managing splicing in spreadsheets, struggling to piece together reports, or if it takes hours to track down a fault, OSPInsight's database driven solution can increase your team's efficiency and save you money. Whether it's faster troubleshooting to more detailed documentation, OSPInsight helps organizations globally to operate and analyze their key asset - fiber