Intermap to Buy Out PCI Geomatics for $11 Million, Merging Elevation Models With Image Processing

Intermap Technologies has signed a definitive agreement to acquire the remaining shares of Canadian software developer PCI Geomatics Group for $11 million in cash. The deal consolidates the Englewood, Colorado geospatial intelligence provider's existing ownership stake in PCI and combines the two firms' processing and analytics capabilities into a single platform.

The acquisition merges PCI's proprietary remote sensing algorithms with Intermap's high-resolution 3D digital elevation models. Earlier this year, PCI launched UrbanSAR, a product designed to track shifting buildings in cities from space. Intermap framed the timing against exponential growth in Earth observation data volumes as more sensors are added in low Earth orbit, a shift that, combined with increased computational power and available artificial intelligence tools, is moving the geospatial market away from raw image collection toward automated processing and analytics.

The combined company can now offer an integrated platform that handles raw data collection, corrects image distortions, extracts specific features and delivers artificial intelligence analytics. Intermap said this vertical integration allows enterprise and defence customers to reduce the latency between raw sensor collection and operational decision-making. PCI, which operates commercially as CATALYST, brings deep experience in automated satellite image processing and maintains thousands of active workflows worldwide. The combined product suite provides data-as-a-service solutions for commercial underwriting, infrastructure monitoring and multi-domain situational awareness.

The transaction is expected to be immediately accretive to Intermap's commercial revenue growth, EBITDA and cash flow. Approximately 60 per cent of the pro forma revenue will come from recurring commercial subscriptions and repeat contracted licenses, a structure that increases the company's exposure to high-margin software services.

PCI President and CEO June McAlarey will retain her current position while taking on the additional role of Intermap executive vice-president, managing the commercial business portfolio for the combined entity. "Together, we reduce the time from sensor collection to produce actionable intelligence across land, air, sea and space for decision-makers," McAlarey said.

Patrick A. Blott, chairman and chief executive officer of Intermap, said the company is positioned to create lasting value for customers and shareholders as demand shifts toward automated and autonomous geospatial intelligence and AI-powered decision support. Intermap presented the combined offering as a way to close the gap between the flood of imagery from new sensors and the analytics customers need to act on it.

The transaction requires approval by at least two-thirds of the votes cast by PCI shareholders at a special meeting. Intermap has already secured voting support agreements representing 81.25 per cent of eligible PCI shares, excluding shares already owned by Intermap. Norton Rose Fulbright Canada LLP and Stifel are advising Intermap on the transaction.