Oxford Metrics Acquires Motion Measurement System Developer IMeasureU.
28 June 2017 - UK-based software company Oxford Metrics plc (LSE: OMG) has acquired New Zealand-based motion measurement system developer IMeasureU, the company said.
The acquisition comprises an initial consideration of GBP 1.99m (USD 2.55m) paid in cash from existing resources.
A deferred cash consideration of up to GBP 2.89m (NZD 5.1m) is payable: 75% is contingent on IMeasureU achieving a series of stretching SaaS-based recurring revenue goals and 25% is contingent on growth of existing revenue streams measured over the course of a 27-month period following the completion of the acquisition.
For the full year ended 31st March 2017, IMeasureU reported revenues of NZD 0.3m, a loss before tax of NZD 0.3m and Net Assets of NZD 0.1m.
Oxford Metrics develops and markets analytics software for motion measurement and infrastructure asset management to clients in over 70 countries worldwide.
The group trades through two subsidiaries: Vicon and Yotta.
Vicon is in high precision motion measurement analysis to thousands of customers worldwide, including Guy's Hospital, EA Sports, MIT and NASA.
Yotta provides cloud-based infrastructure asset management software to central and local government agencies and other infrastructure owners. Yotta has a large number of high profile clients including Highways England and Amey in the UK and VicRoads in Australia amongst others.
Founded in 2013 and based in Auckland, New Zealand, IMeasureU has developed a motion measurement system which fuses Inertial Measurement Unit sensors with proprietary software to provide high fidelity movement and workload data.
These wearable sensors are lightweight and small, about the size of a GBP 2 coin. The sensors can be attached to a subject enabling researchers to monitor and manage an athlete's performance and assist in their recovery following injury.
While the sensors do not offer the same positional accuracy as a Vicon system, no additional camera equipment is required. This allows flexibility and a greater variety of applications.
For example, data can be captured outdoors and researchers can monitor multiple subjects at the same time.
With measurement solutions starting at a few thousand USD, it provides a relatively low cost way to measure a subject's biomechanics, giving Vicon access to a broader marketplace.
Oxford Metrics said it believes the acquisition will contribute to the group's five year strategic growth plan by expanding Vicon's addressable market, accelerating its ability to develop new Vicon product, opening up opportunities to cross-sell, and by further increasing over time the Group's recurring revenue base.
Last year the group announced its five year growth plan, which aims to double profits and triple recurring revenues by 2021.
The decision to acquire IMeasureU delivers on one of the commitments made under this plan for FY17: to invest in Vicon as a profitable market leader and improve its product offering.
IMUs are a natural extension of the Vicon product suite, and the data produced by IMU sensors can be analysed through Vicon's existing end-user applications.
Vicon's revenue base, by comparison, has considerable repeat business but a lower level of recurring revenue which the addition of IMeasureU will serve to increase.
Country: New Zealand
Sector: Computer Software
Buyer: Oxford Metrics plc
Deal size in USD: 2.55m
Type: Corporate Acquisition
Buyer advisor: , ,
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|Publication:||M & A Navigator|
|Date:||Jun 28, 2017|
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