News blog

1Spatial / Avisen

  • BY: Andrew Hore |
  • POSTED: 07/10/2011 |

Profitability enhancing software supplier Avisen has made an all share agreed bid for location-based software and services provider 1Spatial which is at a discount to the previous day’s share price.

Avisen is offering 5.761 of its own shares for each 1Spatial share. At the closing price of 3.88p for each Avisen share, 1Spatial is valued at £4.74m, or 22.35p a share.

However, the Avisen share price has fallen 0.13p to 3.75p. That means the value of the bid has declined to 21.6p a share. The 1Spatial share price has fallen 0.5p to 24.5p so it is well above the current value of the bid.

Avisen shareholders will own 65% of the enlarged group. Nick Snape of 1Spatial will become managing director of Avisen, whose chief executive Marcus Hanke was a non-executive director of 1Spatial.

Avisen has a strong balance sheet. Net cash was £313,000 at the end of January 2011. Since the year end, Inca Software has been sold for £7.3m and £6m of that has been received in cash with the rest due to be paid in April 2012. The balance sheet will get stronger because 1Spatial had net cash of £1.5m at the end of June 2011.

Trading has been tough for 1Spatial because of delays in public spending. Revenues fell from £8m to £7.31m in the year to June 2011. Even when reverse takeover costs and exceptional charges are excluded, 1Spatial made a small loss last year.

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