After revealing in July that it had its eye on several acquisition targets, AIM-listed Avisen has finalised terms on a deal which will see the business merge with 1Spatial, and ultimately see the end of the Avisen brand.

After revealing in July that it had its eye on several acquisition targets, AIM-listed Avisen has finalised terms on a deal which will see the business merge with 1Spatial, and ultimately see the end of the Avisen brand.

On completion of the reverse takeover, the enlarged company will move to a single 1Spatial identity.

The transaction values Cambridge-based location data management business 1Spatial at £4.74 million.

Explaining the move, Marcus Hanke, chief executive officer of business consultancy and software company Avisen, comments: ‘Avisen has achieved a secure financial position and a solid business proposition.

‘It has been our intention to identify the right company to acquire to support the next phase of our development.’

The buy-and-build strategy comes after a similar move in 2010 by London-based Avisen when the business acquired Xploite for £11.4 million. Following the transaction, executive chairman Ian Smith and chief operating officer Anthony Waver stood down from the company after disagreeing with the board over corporate strategy.

Nic Snape, chief executive officer of 1Spatial, says that on the back of its profile in the spatial industry, and the access to capital and business acumen that Avisen provide, the business will now be able to ‘capitalise’ on the foundations it already has.

Snape adds: ‘The 1Spatial board are confident that the combined companies will accelerate the growth of 1Spatial and provide significantly enhanced shareholder return.’

The new business will be led by a team from both companies, with Hanke remaining as chief executive and Snape becoming managing director.

For the year to date 31 January 2011, Avisen reported revenues of £12.3 million (up from £7.2 million in 2010), and an EBITDA loss of £1.5 million.