Location Sciences Group PLC (LON:LSAI) reported revenues growth of 60% to £1.2mln last year and said it had agreed to sell its location data collection assets to US location specialists X-Mode as part of a new partnership.
The AIM-listed company, which provides verification and analytics services for location data, has over the last year increasingly been focused on growing its verification platform, Verify.
X-Mode will pay up to US$640,000 in cash, with an initial payment of up to US$180,000 and the balance to be paid monthly until December 2021.
Location Sciences chief executive Mark Slade said: “Strategically, this deal fulfils the board's decision to focus the team and our resources on the scalable business model - verification and measurement insights.
“Significantly, X-Mode's international data allows us to offer greater location insights products to our US Verify customers.”
He said a few offers had been received for the location data collection assets, but X-Mode “stood out due to its international scale and ambitious plans to grow its business and reach globally”, with the partnership giving Location Sciences “access to the largest pool of quality location data globally”.
Over 2019, revenues for Verify have risen more than ninefold compared to the £53,922 from 2018, with more than 100 brands and more than 20 media agencies now using the service.
Location Sciences said it had year-end cash reserves of around £1.3mln.