IDOX PLC said Monday that it has bought LandHawk Software Services Ltd. for 1.1 million pounds ($1.2 million), enhancing its geospatial information services, or GIS, offering.
The London-listed management-software provider said it will pay for the acquisition of the land mapping software and GIS data business with existing resources and that there is a deferred equity consideration of a further GBP400,000 which will be issued 18 months after the transaction.
The company expects the acquisition to be loss-making in the first year and earnings-enhancing thereafter as the board has seen scope for it to deliver attractive profit growth in the medium term through the expansion of offerings and growth into commercial and local authority markets.
“With appropriate additional investment from the group, revenue growth potential is anticipated in both LandHawk’s existing commercial land sourcing markets, and Idox’s existing local authority land and property markets,” the company said.
Shares at 0728 GMT were flat at 64.60 pence.