IQGeo Group plc
(the "Company" or the "Group")
Disposal of Minority Interest
IQGeo Group plc (AIM: IQG), a leading developer of geospatial productivity and collaboration software for telecoms and utility network operators, is pleased to announce that, following the successful fundraise and acquisition announced on 1st December 2020, it has received an approach and subsequently signed an agreement to sell its remaining 5.6% stake in its former RTLS SmartSpace business, to its majority owners, a company that is owned and controlled by funds managed or advised by Investcorp Technology Partners, an affiliate of Investcorp Bank B.S.C. (the "Purchaser" or "Investcorp") for a total consideration of £2.5m. The agreement contains certain other typical provisions including a partial share of any potential upside consideration if the RTLS SmartSpace business is sold on within six months of this disposal at a greater valuation. This disposal is expected to complete during the course of January 2021.
Background to the Disposal
On 31 December 2018 the Group received £30m in cash for a 94.4% stake of its RTLS SmartSpace business with the remaining 5.6% stake held as an investment into the newly formed entity alongside Investcorp. This investment was written down to £200k as at 30 June 2020, as described in the Group's interim accounts announced on 14 September 2020, and neither target for contingent consideration payments has been achieved.
This remaining stake in the RTLS SmartSpace business will now be sold to the Purchaser.
Richard Petti, CEO of IQGeo Group plc said
"We are delighted that Investcorp have decided to consolidate their holding in the RTLS SmartSpace business. The £2.5 million of cash proceeds will help support our strategy as we continue to build a successful recurring revenue geospatial software business focused on telco and utility network operators."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014
For further information contact:
IQGeo Group plc +44 1223 606655
finnCap Ltd +44 20 7220 0500
Henrik Persson, Matthew Radley (Corporate Finance)
Tim Redfern, Richard Chambers (ECM)
Notes to editors
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.
With over 50,000 active software users, IQGeo has an established and rapidly growing customer base with telecoms and utility companies worldwide.
IQGeo trades on AIM with the ticker IQG.
For additional information please visit www.iqgeo.com