In a significant move, Ubisense, a prominent player in the enterprise location intelligence industry, aims to sell its RTLS SmartSpace business unit.
The potential sale to Investcorp Technology Partners is set at an impressive £35 million, marking a pivotal moment for the Cambridge-based company.
Ubisense is poised to undergo a strategic transformation with the proposed sale of its RTLS SmartSpace unit. This decision aligns with its vision to rebrand as IQGeo, a dedicated geospatial software firm, catering primarily to telecoms and utilities sectors.
This strategic move, as highlighted by Ubisense CEO Richard Petti, enables a sharper business focus, promising new growth and development opportunities for the company.
Richard Petti emphasized the long-term strategic benefits for both IQGeo and RTLS SmartSpace, highlighting this as a positive evolution for both divisions.
The funds from the sale are anticipated to fuel advancement in Ubisense’s myWorld software business, aiming to capitalize on the significant market potential in fiber broadband and 5G technology.
Petti envisions IQGeo as a powerhouse in the global software market, aiming for high recurring revenues, substantial margins, and robust cash flow.
KPMG’s role as the sole financial adviser reinforces the importance of this transaction in Ubisense’s strategic agenda.
Ubisense’s Geospatial myWorld business generated £16.5 million in revenue in 2017, a figure that illustrates its substantial market foothold.
Simultaneously, the RTLS SmartSpace business achieved £10.8 million, showcasing its own value and market presence.
Looking ahead, Petti is optimistic about building upon the myWorld software’s success, which has seen a revenue growth rate of over 35% since 2015.
A strong existing customer base and an expanding pipeline of opportunities signal a promising future driven by global technological advancements.
The emergence of fiber broadband and 5G technology serves as a catalyst for growth in Ubisense’s core markets.
These innovations open avenues for expanded services and solutions, aligning with IQGeo’s mission to deliver high-value software solutions globally.
Petti stresses the critical role of technological advancements in driving the company’s strategic objectives forward.
Such advancements are expected to provide IQGeo with the leverage needed to capture new markets and enhance customer satisfaction.
The conclusion of this deal is an integral step towards Ubisense’s transformation into a focused geospatial software entity.
Shareholder approval stands as a critical milestone in actualizing this transaction, expected by December.
This step signifies a new chapter for Ubisense, positioning IQGeo for sustained growth and leadership in the industry.
In summary, the sale of RTLS SmartSpace marks a bold step for Ubisense, reinforcing its strategic shift towards becoming a leading geospatial software provider as IQGeo.
This move is anticipated to empower Ubisense with the capital necessary to invest in innovative technologies and secure a competitive edge in the rapidly evolving telecoms and utilities sectors.
