The all-cash deal is worth $5.7m and also includes a working capital adjustment and contingency fees (rated on MarkeTech’s profitability) to be paid at the year’s end.
Privately-held MarkeTech develops software and data services for retail banks, a market that MapInfo has been focusing on recently. MapInfo’s software integrates geographical data (including census and demographic data) for use in business analysis and forecasting. This is sometimes referred to as location intelligence.
According to MapInfo CEO Mark Cattini, the acquisition is a continuation of its vertical strategy that also targets sectors like retail, telecommunciations and utilities. MarkeTech enhances the capabilities we offer customers in the financial services sector and improves our understanding of the issues facing retail banks, he said.
Cattini expects the acquisition will lead to new applications that provide demographic insights into customer behavior and bank branch performance.
New York-based MapInfo expects MarketTech to pull in around $1.5m for the remainder of this fiscal year (ending September 30) and $5m next year. The company is confident that integration costs will not impact per-share earnings.
MapInfo shares rose 2.5% yesterday to $12.31 on Nasdaq in midday trading.
