Just got word that Aeroquest, a publicly traded firm supplying airborne geophysics and geomatics survey platforms for the mineral and petroleum exploration and environmental and infrastructure industries, has purchased the mapping arm of OSI Geospatial, known as Mapcon.
Here are the details:
Aeroquest International Limited and OSI Geospatial Inc. (“Aeroquest”) and (“OSI”) announced today the acquisition by Aeroquest of the Mapcon Mapping group of companies from OSI, which closed on January 31, 2011. Mapcon provides LiDAR, photogrammetry and related geomatic services to customers in the North American marketplace. Mapcon consists of two entities: a Canadian sales, operations and project management team located in Burnaby, BC; and a United States sales team located in Salt Lake City, Utah. Mapcon generated approximately $4 million of revenue in its last fiscal year.
Total purchase price is $1.15 million subject to an adjustment to reflect the difference between estimated and actual net working capital at closing.
Getting $4 million in revenue for $1.15 million, maybe less, sounds like a pretty good deal. Judging by the investor presentation on their site, Aeroquest was hit pretty hard by the recession and is looking for ways to get some scale and increase its gross margin. This seems like a reasonable way to do it.