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A geospatial intelligence company based in Denver, Colorado, has agreed to buy out the remaining ownership stake in a satellite imaging software partner it has worked alongside for years. Intermap Technologies Corporation (OTCQB: ITMSF, TSX: IMP) announced that it entered into a definitive arrangement agreement to acquire all outstanding shares of PCI Geomatics Group Inc., known by its brand name CATALYST, that it does not already own.
The deal is valued at $11 million in cash and will be carried out under the Canada Business Corporations Act. Intermap already holds all of PCI’s Series B Preferred Shares and roughly 3.3% of PCI’s common shares, so the transaction closes the remaining gap between partial and full ownership.
PCI Geomatics has spent 45 years building software that processes satellite and aerial imagery for remote sensing and photogrammetry work. Its technology includes more than 750 proprietary algorithms, ranging from basic image correction to advanced analytical processing, and it supports imagery from more than 500 satellites currently in orbit. Governments, insurers, defense agencies and infrastructure operators in over 150 countries rely on the software, which carries more than 30,000 active licenses worldwide.
Combining the two companies creates a fuller pipeline, running from raw satellite imagery to decision ready intelligence. Intermap brings 3D elevation data covering more than 300 million square kilometers across over 150 countries, while PCI contributes the image processing layer that converts raw satellite feeds into corrected, analysis ready products. The combined technology is meant to serve customers in defense, insurance underwriting, telecommunications, transportation and infrastructure monitoring who need faster turnaround between image capture and usable data.
Management expects the acquisition to add to commercial revenue growth, earnings, EBITDA and cash flow immediately after closing, rather than after a lengthy integration period. Roughly 60% of the combined company’s pro forma revenue is expected to come from recurring commercial subscriptions and repeat licensing contracts, a mix that gives investors a clearer read on future revenue than one time project work typically provides. Patrick A. Blott, Intermap’s Chairman and Chief Executive Officer, said the acquisition supports the company’s broader plan to build a full-scale geospatial intelligence platform as commercial satellite constellations continue expanding.
June McAlarey, who has led PCI as President and Chief Executive Officer, will remain in that role and take on an expanded position as Executive Vice President at Intermap, overseeing the combined commercial business. The arrangement has already received unanimous approval from both companies’ boards, and shareholders holding roughly 81.25% of PCI’s outstanding shares eligible to vote, excluding Intermap’s own stake, have signed agreements committing to vote in favor. Completion still requires a special shareholder meeting, court approval and other closing conditions typical of a transaction of this kind.
Intermap itself was founded in 1997 and is headquartered in Denver, with a long history in 3D terrain mapping for government and commercial clients. The company has spent recent months expanding through smaller partnerships, including work tied to the NSG UP42 geospatial platform, before taking this larger step of folding PCI fully into its operations.
The appeal of this deal, for a company that trades in a corner of the market few large investors follow closely, rests largely on the revenue mix it creates. A business built mostly on repeat subscriptions and renewed licenses is easier to forecast than one dependent on new government contracts or one time project awards.
This deal gives Intermap direct control over a technology partner it has relied on for years, rather than leaving that relationship split across a separate ownership structure. For a company operating in a niche corner of the geospatial technology market, closing that gap removes uncertainty and lets the combined engineering teams work under one roof going forward. Once the deal closes, quarterly results should begin to show how much PCI’s contribution actually adds to Intermap’s business.
