Acquisition
OMG PLC
28 April 2008
28 April 2008
OMG plc
Acquisition of Mobile Video Services, Inc.
OMG plc, Oxford Metrics Group (LSE: OMG), the technology group providing image
understanding products for the entertainment, defence, life science and
engineering industries, is pleased to announce that its 3D mapping division,
Yotta, has acquired the trade and assets of Mobile Video Services, Inc. ('MVS'),
a leading US provider of data collection services for the assessment of property
taxation, for a total consideration of $4.0m (£2.0m).
The acquisition accelerates the growth of Yotta's 3D mapping business in North
America, fulfilling OMG's strategic objective to expand its operations in this
important market place. MVS provides OMG with an instant operational capability
and offers field data collection and data processing synergies with its existing
operations. Yotta will add its mobile mapping technology to MVS vehicles and
enable the new business to quickly enter the highway survey and mapping market
while growing data collection services in the property tax assessment market.
The acquisition is expected to be earnings enhancing for OMG in the current
financial year ending 30 September 2008. MVS' unaudited financial statements
for the year ended 31 December 2007 show revenues of $4.2m (£2.1m), profit
before tax of $0.84m (£0.42m). Net assets acquired amounted to $0.25m (£0.13m).
The deal represents the next important step in the development of the Yotta
business. Yotta was founded less than two years ago to exploit core OMG
technology in the growing market of 3D mapping. The reach of this technology was
further extended in July 2007 with the acquisition of UK-based Data Collection
Limited (DCL). This new deal strengthens the business further, by providing
Yotta with a foothold from which to expand Yotta's 3D mapping business in North
America.
MVS, which is based in Kansas City, Missouri, USA, holds a leading position in
the market for the collection of data for property appraisal. MVS provides field
data collection services in order to capture high resolution geospatially
referenced images of properties for property tax administrators, GIS departments
and 911 agencies. Employing a total of 42 staff, it operates a fleet of 16
field vehicles across the US, and manages a number of long-term contracts with
local government agencies.
The acquisition comprises an initial consideration of $2.5m (£1.25m) of which
$1.5m (£0.75m) in cash and $1.0m (£0.5m) in OMG shares and a deferred
consideration of up to $1.5m (£0.75m) in cash and OMG shares. The initial cash
consideration is subject to an adjustment for the closing net assets position.
The deferred consideration is subject to MVS meeting minimum revenue targets of
over the next two years. Application will be made for 1,045,671 OMG shares,
comprising the initial share consideration, to be admitted to AIM, which is
expected to become effective on 1 May 2008.
Nick Bolton, Chief Executive of OMG plc, said,
'I am very pleased to be making this acquisition. MVS represents an exciting
proposition for Yotta by providing a number of important benefits, including a
profitable platform for expansion in the US and an opportunity to maximise data
collection opportunities, not to mention growing further in its own right. The
MVS team is great and their market knowledge is second to none. Bringing these
businesses together gives me further confidence in Yotta's growth prospects both
in the US and globally.'
Contacts
OMG plc 01865 261800
Nick Bolton, Chief Executive
Peter Wharton, Finance Director
Financial Dynamics 020 7831 3113
Juliet Clarke / Matt Dixon
Evolution Securities (NOMAD to OMG) 020 7071 4300
Jeremy Ellis
Notes to Editors
About MVS
Mobile Video Services, Inc was founded in 1986. From headquarters in Kansas
City, Missouri and field operatives spread across the USA, the Company provides
field data collection services capturing high resolution geospatially reference
images of properties for property tax administrators, GIS departments and 911
Agencies.
Mobile Video Services, Inc., specializes in field data verification, address
matching, and imaging. Using electronic maps and orthophotos, we collect the
x-y coordinate for each structure, verify its site address and, optionally, the
unit addresses within, and take a street-view image to confirm.
Mobile Video's customer base spans an array of both county and city departments,
including Tax Assessor/Appraiser, Zoning/Planning, and GIS Mapping. Our
services also help to meet the specific needs of various public safety
departments, such as Fire, Law Enforcement, EMS, and Emergency Management. In
essence, groups and organizations which benefit from having immediate access to
geo-coded images and data for all properties in a jurisdiction find that Mobile
Video can provide thorough, cost-effective, and user friendly solutions and
applications for the workplace.
About OMG
OMG plc (Oxford Metrics Group. LSE: OMG) is a group of technology companies
producing image understanding products and services for the entertainment,
defence, life science and engineering industries. Be it for capturing the
movements of actors (for the movie industry), sportsmen (for video games or
improving team performance), children with Cerebral Palsy, rehab patients and
animals (for medical, life science and research industries) or virtual reality
displays (for engineering and development), the Group has the world leading
market position and a strong international reputation for precision instruments.
Founded in 1984, the Group's headquarters are in Oxford, UK, and it has offices
in California and Colorado, USA. It has customers in over 50 countries and is a
quoted company listed on AIM, a market operated by the London Stock Exchange.
The Group trades through three operating subsidiaries - Vicon, the world's
biggest motion capture and movement analysis company, 2d3, a manufacturer of
specialised image understanding software for entertainment and defence
applications and Yotta, our 3D mapping business, which collects and analyses
highway data and street level imaging and which, following the acquisition of
DCL in July 2007, offers the most accurate and complete highway survey
available.
Oxford Metrics' global clients in science, medicine, sport, engineering, gaming,
film, broadcast and 3D mapping include major hospitals and research facilities
such as Guy's Hospital, Nuffield Orthopaedic Centre and Loughborough University,
engineering industry leaders including Ford Motor Company, BMW, Airbus and
Toyota, and in the entertainment sector, Sony, Industrial Light and Magic, The
Moving Picture Company (MPC), Sega, Nintendo, UbiSoft, EA, Square Enix and in 3D
mapping and highway surveys: Mouchel Parkman, Atkins, and Oxfordshire, Cumbria,
Derbyshire and Pembrokeshire County Councils as well as many others.
For more information about OMG and its subsidiaries, visit www.omg3d.com,
www.vicon.com, www.2d3.com or www.yotta.tv
This information is provided by RNS
The company news service from the London Stock Exchange