Digital advisory and consulting firm Veris (ASX: VRS) has boosted its government client base through the acquisition of Melbourne-based geospacial services group Spatial Vision for $3 million.
Spatial Vision, which was founded in 1999 by Stephen Farrell, Ian Miller and John Heskins, specialises in geospatial solutions and GIS (geographic information system) services to state and local government agencies, commercial organisations and not-for-profit organisations.
The acquisition, via a cash and scrip deal, will expand the reach of the Veris business to key clients across local, state and federal government agencies in Victoria, NSW, Queensland and Western Australia.
The founder-led Spatial Vision generates more than $9 million of revenue annually with Veris expecting the acquisition to be earnings accretive from FY26 as the deal is targeted to settle by early March.
Veris already has a strong GIS service offering and the acquisition is aimed at driving the company’s goal of delivering “bespoke end-to-end spatial data driven solutions for its clients through product innovation and value-added insights”.
Veris says it is confident of realising “significant synergies” once the business is merged with its operations.
“This acquisition is a strategic step forward in our strategy to provide unparalleled digital solutions, consulting and advisory services,” says Veris CEO Dr Michael Shirley.
“By integrating Spatial Vision’s spatial and GIS capabilities with our existing expertise and skillsets we are set to deliver even greater value to our clients and drive innovation in the delivery of spatial data-based digital solutions.”
Shirley says the acquisition “aligns perfectly” with his company’s digital strategy.
“In addition, Spatial Vision’s established relationships with local, state, and federal government agencies will open new avenues for collaboration and growth,” he says.
“We welcome the ongoing commitment of Ian, Stephen and John as founders of Spatial Vision and their team to our group. Together, we will create a powerhouse of innovative digital solutions, ready to meet the evolving needs of our clients.”
Apart from spatial and GIS services, Spatial Vision’s core business includes enterprise GIS (encompassing training, product development and support) and application development.
The Melbourne company supports a team of 40 professionals servicing government and private sector clients across sectors such as climate change, agriculture, natural resource management, fisheries and marine markets.
Veris this week announced a rebound in profitability over the six months to the end of December with profit before tax of $1 million up 212 per cent on the previous corresponding period.
This is despite a 3.3 per cent fall in unaudited revenue to $46.8 million, which the company says is consistent with its strategy of "proactive project selection and targeting higher margin work with key clients".
Veris had a cash balance of $17.6 million at the end of December, up from $16.1 million at 30 June 2024.
The company revealed today that it has issued $500,000 worth of shares to satisfy the scrip component of the Spatial Vision acquisition. The balance will be funded from existing cash reserves and from operating cash flows following the transaction.
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