MapInfo Corporation (MAPS) today announced that it has acquired privately-held MarkeTech Systems, Inc., a Raleigh, North Carolina-based provider of software, data and services for use by retail banks to enhance branch network sales and profitability.
The acquisition will expand MapInfo's product offering and deepen its domain expertise in financial services, one of the vertical markets targeted by MapInfo for growth.
Under the terms of the transaction, the purchase price was approximately $5.7 million in cash, subject to a working capital adjustment, plus contingent consideration to be paid at the end of the first year following closing based on the profitability of the acquired business.
MapInfo expects this acquisition to generate approximately $1.5 million in revenues for the remainder of the fiscal year ending September 30, 2005 and, as a result of integration costs, expects no impact on earnings per share. In fiscal 2006, the company expects the acquisition to add approximately $5 million in revenues and be accretive by approximately $0.01 per share, including estimated annual amortization of approximately $600,000.
"Acquiring MarkeTech Systems is a natural fit with our vertical market strategy of deepening our presence in selected markets where our location intelligence solutions help solve business problems and improve organizational performance," said Mark Cattini, president and chief executive officer, MapInfo. "MarkeTech Systems enhances the capabilities we offer customers in the financial services sector, improving our understanding of the issues facing retail banks and adding powerful analytical models that provide insight into customer behavior and branch performance.
"With this transaction we are also expanding our analytical services capacity with staff focused on retail banking projects. Finally, consistent with our previous vertical market acquisitions, MarkeTech Systems brings MapInfo decision support solutions that are equally applicable outside of the U.S."
"MarkeTech Systems' services and products and overall vision for the evolution of its offering complements MapInfo's plans to deepen its vertical market expertise in the financial services market," said Terry Meyer, president of MarkeTech Systems. "In addition, we share a dedication to delivering value by solving customer needs and establishing long-term customer relationships. We are excited about the prospect of joining MapInfo."
Founded in 1988, MarkeTech Systems offers decision support solutions designed to help retail banks improve branch and branch network performance by analyzing which market to enter, the type of network to implement and the optimal network configuration, and by determining profitability and performance measures and actions. Its product offering consists of two software applications, WinSite and Perform, and a data-driven performance benchmarking application, which establishes consistent and replicable cross-bank performance metrics for comparison against an individual bank's results.