GIS (geographic information system) provider MapInfo has purchased "strategic research" group Dimasi in a move to push additional mapping and location intelligence services in the Australian retail and services sector.
The purchase of a retail, property and commercial analytics firm will allow MapInfo to extend its global product range in Australia.
MapInfo Australia bought Dimasi Strategic Research yesterday in a deal worth just over $3 million, with $1 million of the payment contingent on performance and the balance ($2.4 million) a straight cash payment to Dimasi.
No Dimasi staff will be lost as a result of the purchase and Dimasi will become a self-contained part of the MapInfo services group. According to Gavin Lennox, MapInfo Asia Pacific GM, the purchase will let MapInfo could move into the high value space of "application technology" to diversify its market strategy.
"We are concentrating on core verticals as a location-intelligence company solving business problems in the telecommunications, public sector, retail and services sector - about 22 percent of our revenue globally comes from the retail sector but in Australia that is a smaller percentage," Lennox said.
"Retailers are not interested in simple demonstration maps - they now want to understand the question of 'what happens if ...' and Dimasi can provide the trends and the vertical market insight. MapInfo produces a reference data set from a geographic perspective.
"Dimasi is a 100 percent services company and the combination of the two gives us an opportunity for new products in the market, not just for retail data but also a platform for introducing products from around the world into the Australian market because we now have the expertise to use analyticals."
Dimasi managing director Tony Dimasi said using additional intelligence in maps means they can now be used to convey business-specific intelligence - a trend Dimasi considers relevant for the retail industry.
"There is a lot more to servicing the need of a major retail group or property buyer which requires a lot of property data that we (Dimasi) build ourselves and analyzing the data requires a lot of expertise as to how groups of people make particular decisions," Dimasi said.
"Data is a core ingredient."