Perhaps management at self-styled "business technology and profit improvement specialist" 1Spatial are finally setting the right trajectory to reach a sustainable orbit, with the proposed acquisition of 75% of Belgium-headquartered GIS (geographic information systems) software firm Star-Apic. 1Spatial is to raise £18m gross in a 6p per share placing to finance the €5.1m acquisition, with the balance to be used to expand the business. 1Spatial's shares had previously been trading at 6.75p, valuing the stock at £24m. Star-Apic turned over €8m in 2012 with a marginal net profit (€100k) – but a profit nonetheless. 1Spatial is losing money (see No ‘profit improvement’ for 1Spatial).
1Spatial is also bringing on board WANDisco CEO and founder, David Richards, as deputy non-exec chairman, adding a little glamour to the line-up (though let's hope that doesn't distract him from his day job!).
The relative size of the acquisition would usually ring all our warning bells, more so as profitability at Star-Apic is so finely poised. But as much as I have somewhat taken the mick (moi?) out of iSpatial's more colourful announcements, I have also said that it is the GIS bit of its business that is worth a closer look.
Bold moves all, but 'boldly going' is often required to conquer the next frontier.