Major Acquisitions and Partnerships in the Geospatial Industry; the math of business transformation

In the recent release of the Global Geospatial Industry Outlook Report by Geospatial Media and Communications, it is illustrated the drivers of Acquisitions and Partnerships that have been witnessed in this industry especially at the fall of 2013. The Mergers and Acquisitions (M&A) point towards a rush to break into new markets for the companies, improving products release cycles and competitive edge. More often, partnerships aim at introducing new products to a companies line of products without having to develop the products internally.

Here is a list of Mergers and Partnerships (M&A) that have notably transformed the geospatial landscape;

  This strategic alliance agreement focused on driving new business value by accelerating digitalization to advance infrastructure project delivery and asset performance in their complementary business areas. With initial investment of at least Euro 50 million from both Siemens and Bentley, the focus was in developing joint solutions to enlarge their respective offerings for infrastructure and industry to the benefit of the end-customers. Cloud service is uniquely identified in this alliance as a key area for a connected data environment to converge respective digital engineering models from both companies. – See more here 

Two leaders in Precision Survey equipment combine to manufacture top of the line equipments for global markets. This merger put them in a position to rival on an equal basis the two leading US and European manufacturers, as well as with emerging Asian manufacturers that can produce on a low-cost basis. Learn more here

Following the $2.8 billion deal to buy Nokia’s HERE digital mapping company last week with German luxury car makers Audi, BMW and Daimler, HERE is currently equally owned by the 3 car makers. The deal announced in 2015 came with a sigh of relief among many that at least automotive companies, not Google, bought the digital mapping pioneer. Since then, there has been a continued growth in value of accurate maps to the automotive industry as it transitions for connected to autonomous vehicles.

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Other M&As

  • Uber’s Acquisition of Mapping Startup deCarta. Read more
  • GeoComm Acquisition of  GeoSolve, Inc., Oregon-based GIS company. Read more here

  • Canada’s MDA Acquire DigitalGlobe, Creating Industry Leader in End-to-End Space Systems, Earth imagery and Geospatial Solutions. Read more

There are a number of other acquisitions out there. Interested in knowing more, Google is your friend or check here on Crunchbase.

While the list can be infinite, what are the Drivers of these Mergers and Acquisitions (M&A);

According to the Global Geospatial Outlook report, the partnerships or acquisitions are purposed around;

  • building a larger technology portfolio especially for horizontal partnerships and mergers
  • Many Software in this wave come with content, it is, therefore, a key focus area for companies to build partnership to acquire content  for their products
  • To extend products and markets by consolidation especially firms that are involved in totally or partially unrelated business activities.
  • When companies that are in the same or related business but do not produce the same products merge it usually to gain direct engagement of outreach with customers from both divide.
  • Where two different companies come together to produce a given solution, it usually for system integration.

Steve Ochieng
About Steve Ochieng 16 Articles
Geospatial Specialist | Avid Reader and Vivid Writer here | Geospatial Tech Advocacy and Evangelism | GeoProgrammer and Follower of @geohipster