London-listed IQGeo shares soar as board agrees private equity takeover

Shares in software company IQGeo Group jumped 14 per cent after the board said it has agreed a takeover bid by US private equity giant KKR.

The deal offers IQGeo shareholders 480p per share in cash and values the London-listed company at around £333m. It is subject to a shareholder vote.

The cash offer is a 48 per cent premium to the twelve-month volume weighted average price of 325p per IQGeo share and a 19 per cent premium to the last closing price of the shares (405p).

IQGeo is a leading global provider of geospatial software solutions such as maps, satellite imagery, and GPS data. It helps companies in the telecommunications and utility industries visualise and analyse geographic data to manage their assets and operations more effectively.

The cash offer is 7.1 times IQGeo’s revenue of £44.5m for 2023 and 48.1 times the company’s adjusted earnings before interest, tax, deprecation and amortisation (EBITDA) of £6.6m for 2023.

Paul Taylor, chair of IQGeo, said: “KKR’s proposed offer underscores IQGeo’s highly successful cloud-based software and services, and represents an attractive valuation and an opportunity for shareholders to receive certainty through cash consideration, not only for value created in recent years but also the future platform value of IQGeo.

“The proposed acquisition will provide IQGeo with the ownership structure and investment required to unlock its full potential.”

IQGeo said it has received binding agreements to accept the takeover from several shareholders, including Kestrel Partners and Herald Investment Management. It also has non-binding letters of intent to vote in favour of the deal from Canaccord Genuity Asset Management and Charles Stanley & Co.

Rami Bibi, managing director and head of EMEA for KKR Global Impact, said: “In our view, IQGeo is unique in its support for continued global efforts addressing the digital divide and transforming grid infrastructure, which is aligned with KKR’s strong focus of investing behind grid electrification for net-zero goals.

“To capitalise on the global growth potential ahead, increased investment and an acceleration of IQGeo’s strategy are imperative, and private ownership under KKR will help facilitate this.”

KKR said it has been assessing the business for a number of months and believes private ownership is required to support IQGeo’s next stage of growth, scale its platform globally and drive long-term value.

Patrick Devine, managing director on the Tech Growth team at KKR, added: “KKR’s global platform and track record of scaling leading software businesses, combined with our experience of investing in telecom and grid networks gives us the right tools and capability to support IQGeo, and we look forward to working closely with its management team to capitalise on the long-term opportunity ahead.”

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