Geospatial intelligence provider Intermap Technologies, headquartered in Englewood, Colorado, has signed a definitive agreement to acquire the remaining shares of Canadian software developer PCI Geomatics Group for $11 million in cash.
The transaction consolidates Intermap’s existing ownership stake in PCI. The deal merges PCI’s proprietary remote sensing algorithms with Intermap’s high-resolution 3D digital elevation models. Earlier this year PCI launched UrbanSAR to track shifting buildings in cities from space, a significant new product.
The timing of the acquisition corresponds with an exponential growth in Earth observation data volumes across the industry as more sensors are added in low Earth orbit. This, combined with an increase in computational power and available artificial intelligence tools, sees a geospatial market shifting away from raw image collection toward automated processing and analytics. Intermap can now offer a fully integrated platform that handles raw data collection, corrects image distortions, extracts specific features and delivers artificial intelligence analytics. This vertical integration allows enterprise and defence customers to reduce the latency between raw sensor collection and operational decision-making.
PCI Geomatics, which operates commercially as CATALYST, brings a deep experience in automated satellite image processing. The company maintains thousands of active workflows worldwide. The combined product suite provides data-as-a-service solutions for commercial underwriting, infrastructure monitoring and multi-domain situational awareness.
Financially, the deal is expected to be immediately accretive to Intermap’s commercial revenue growth, EBITDA and cash flow. Approximately 60 per cent of the pro forma revenue will come from recurring commercial subscriptions and repeat contracted licenses. This structure increases the company’s exposure to high-margin software services.
“As demand shifts toward automated and autonomous geospatial intelligence and AI-powered decision support, Intermap is positioned to create lasting value for customers and shareholders,” said Patrick A. Blott, chairman and chief executive officer of Intermap.
PCI President and CEO June McAlarey will retain her current position while taking on the additional role of Intermap executive vice-president. She will manage the commercial business portfolio for the combined entity.
“Together, we reduce the time from sensor collection to produce actionable intelligence across land, air, sea and space for decision-makers,” McAlarey noted.
The transaction requires approval by at least two-thirds of the votes cast by PCI shareholders at a special meeting. Intermap already secured voting support agreements representing 81.25 per cent of eligible PCI shares, excluding shares already owned by Intermap. Norton Rose Fulbright Canada LLP and Stifel are advising Intermap on the transaction.