15 April 2011, 1:23pm1Spatial, a holding company focused on improving the quality and access to business critical location-data across the globe, is pleased to announce that on 15th April 2011, it entered into a binding share purchase agreement relating to the acquisition of Lagen Spatial pty Limited (the “Transaction”). Lagen Spatial pty Limted ("Lagen"), based in Sydney, is one of Australia's leading distributors of spatial and location based software technologies. The acquisition will provide 1Spatial with a critical mass in Australia on which to launch the Company’s planned expansion in this developing economic powerhouse. Lagen reported profits before taxation of Aus $268,000 in the year to June 30th 2010.
The acquisition will be funded out of 1Spatial's working capital and will not result in any dilution of existing shareholder equity.
Completion of the Transaction, which is subject to the provision of certain standard documents by the Company and Lagen, is scheduled to take place on 19th April 2011 ("Completion").
The total consideration paid by the Company will be Aus$1.0m, consisting of $765,000 in cash and $235,000 in clearance of existing Lagen loan liabilities