IQGeo acquires Belgian software outfit COMSOF

Software provider IQGeo has acquired Belgian geospatial software company COMSOF in a deal valued at up to €13.0m.

IQGeo said on Friday that in order to fund the acquisition of COMSOF it will now look to raise approximately £3.5m by way of a placing of 58.55m ordinary shares at a price of 125.0p each.

The AIM-listed firm will also launch a direct subscription with the directors of the company.

IQGeo stated that COMSOF's enterprise value was roughly €10.0m and added that the business has approximately €3.0m in cash on its balance sheet as at closing.

Of the group's initial €10.0m consideration, €8.85m will be in cash, while the remaining €1.15m will be satisfied via the issue of ne ordinary shares.

"The acquisition is expected to accelerate Company sales in fibre optic design planning and design tools in high value markets where nation-wide fibre optic networks are being rolled out in such as North America, UK and Germany among others. Additionally, the Acquisition adds a global customer base of circa 100 active customers providing IQGeo a materially enlarged and loyal user base with potential to increase cross-selling of IQGeo software products," said IQGeo.

"The board believes the financial benefits of the acquisition will be realised by the company immediately and the acquisition is expected to be earnings enhancing in its first full year of ownership."

As of 0900 BST, IQGeo shares were up 1.12% at 126.90p.

Reporting by Iain Gilbert at Sharecast.com