Two companies offering solutions in location intelligence, Galigeo and APOS Systems, announced their intentions to merge yesterday (press release). I had a chance to ask Galigeo CEO Christian Tapia a few questions about the impetus for the merger.
1. What strengths did Galigeo see in APOS to tackle a merger at this time?
Technically this is an asset sale where the Location Intelligence Solutions (LIS) division of APOS System Inc is being acquired by Galigeo. This includes staff, existing clients, ongoing contracts and sales pipeline. APOS has many LIS clients and in particular in the US. This is clearly a way of enhancing Galigeo's presence in the US.
2. What did Galigeo see occurring in the marketplace that made sense for a merger of two small LI companies?
There are many small and young firms popping up in the LI space, it is a niche and fragmented market. I believe this acquisition is a sign of a market that is beginning to consolidate to find critical mass.
3. How do you see positioning the company given that it now possess quite a number of solutions in the LI space with respect to the emerging competition from BI vendors adding location analytics capabilities.
Galigeo has an open and neutral position. Geo-enabling a database is necessary but not sufficient to produce a fully working LI solution. Our platform connects to the largest BI vendors and enhances their capabilities with true LI business solutions.
4. Is this a move to perhaps be recognized in the Gartner Magic Quadrant that now includes geospatially-enabled solution companies like Alteryx and Tableau?
This move is what I call "industrial". It is geared at gaining market presence and critical mass to best serve our clients and to convince prospects to join in. If Gartner and other market research firms notice this, it is the icing on the cake.