Portfolio Updates

IQGeo acquisition broadens product set and customer base

IQGeo has announced the acquisition of OSP Insight, the US market leader in network design, for a total consideration of US$8.8m. OSP’s software allows customers to build and manage fibre optic networks. The acquisition enhances IQGeo’s breadth of product and sales distribution channel, brings 200 new customers to the group and adds over US$4m of annual revenues.

The acquisition was funded by an equity placing of £5.3m. Kestrel supported the acquisition and fundraising, subscribing £1.3m to take up its pro rata entitlement to the share issue and maintain its 25% stake in IQGeo.


Kestrel Insight

The Covid crisis has exacerbated the inexorable trend of demand for data. Together with the investment cycle for 5G, this has led to a new capital investment cycle for communication providers.

Good news for IQGeo, whose technology helps companies design, build and maintain data networks. IQGeo’s software, which is built on cloud technologies, delivers tangible productivity benefits to an increasingly mobile workforce.

Customers typically replace enterprise software systems during investment cycles and IQGeo is increasingly displacing older established competitors in customers’ IT stacks, as evidenced by its frequent contract wins.

The acquisition of OSP comes at an exciting time for IQGeo and adds many positives: an established product in network design for mid-market communication providers; a more rapid sales cycle; upselling opportunities for IQGeo’s broader product set to OSP’s 200 customers; increased US presence; doubling of IQGeo’s software recurring revenues and a more rapid path to cashflow breakeven.


Kestrel’s Portfolio Updates should neither be construed as investment research, nor the provision of investment advice, nor a recommendation. This article should be viewed as short term commentary only based on the latest economic statistics, company results or information on upcoming releases or events. It is only a brief unsubstantiated summary of Kestrel’s opinion on such information as at the date of publication and no reliance may be placed upon any contents of this article by the recipient.



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