IQGeo Group PLC (AIM:IQG) said it has acquired its Belgian rival in a deal worth up to €13mln and raised €4.1mln (£3.5mln) from investors to part-fund the deal.
Adding 100 active customers, the purchase of COMSOF accelerates the company’s move into the wide fibre networks being rolled out in North America, the UK and Germany.
IQGeo’s spatial software is used by the telecoms and utilities industries.
"There is very significant demand for fibre planning and design solutions globally and the acquisition of COMSOF allows us to satisfy this demand with a world-class product,” said IQGeo chief executive, Richard Petti.
“In addition to accelerating IQGeo telecoms software sales, COMSOF has a significant European customer base and its headquarters in Ghent will act as a European hub for the combined business presenting further expansion opportunities for IQGeo.”
Initially €10mln will be handed over, €8.85mln of which will be cash, with the remainder paid in paper. The earn-out portion of the deal will be settled in cash.
As part of its fundraising, meanwhile, the company confirmed on Friday afternoon that broker finnCap had agreed the sale of 2.5mln new shares to investors at 125p each, a modest discount to Thursday’s close.