1Spatial provides computer software products and services that are used to collect and manage location-based data. Current clients include Ordnance Survey and the Environment Agency.

On completion of the deal the 1Spatial board members will replace the board members of IQ and the new company will be renamed 1Spatial Holdings.

David Marks, chairman of IQ Holdings, says: ‘We have been looking at potential acquisition candidates for some time now and we believe that 1Spatial offers our shareholders a significant opportunity. The Company has a proven financial track record and a solid business model which we believe offers considerable growth potential.’

AIM-listed IQ Holdings is a cash shell company. In February this year the company disposed of its two trading businesses, Rosslyn Research and Viewpoint Field Services and in April raised £150,000 through a share placing.