Acquisition of Mobile Video Services

OMG plc, Oxford Metrics Group (LSE: OMG), the technology group providing image understanding products for the entertainment, defence, life science and engineering industries, is pleased to announce that its 3D mapping division, Yotta, has acquired the trade and assets of Mobile Video Services, Inc. (“MVS”), a leading US provider of data collection services for the assessment of property taxation, for a total consideration of $4.0m (£2.0m).

The acquisition accelerates the growth of Yotta’s 3D mapping business in North America, fulfilling OMG’s strategic objective to expand its operations in this important market place. MVS provides OMG with an instant operational capability and offers field data collection and data processing synergies with its existing operations. Yotta will add its mobile mapping technology to MVS vehicles and enable the new business to quickly enter the highway survey and mapping market while growing data collection services in the property tax assessment market.

The acquisition is expected to be earnings enhancing for OMG in the current financial year ending 30 September 2008. MVS’ unaudited financial statements for the year ended 31 December 2007 show revenues of $4.2m (£2.1m), profit before tax of $0.84m (£0.42m). Net assets acquired amounted to $0.25m (£0.13m).

The deal represents the next important step in the development of the Yotta business. Yotta was founded less than two years ago to exploit core OMG technology in the growing market of 3D mapping. The reach of this technology was further extended in July 2007 with the acquisition of UK-based Data Collection Limited (DCL). This new deal strengthens the business further, by providing Yotta with a foothold from which to expand Yotta’s 3D mapping business in North America.

MVS, which is based in Kansas City, Missouri, USA, holds a leading position in the market for the collection of data for property appraisal. MVS provides field data collection services in order to capture high resolution geospatially referenced images of properties for property tax administrators, GIS departments and 911 agencies. Employing a total of 42 staff, it operates a fleet of 16 field vehicles across the US, and manages a number of long-term contracts with local government agencies.

The acquisition comprises an initial consideration of $2.5m (£1.25m) of which $1.5m (£0.75m) in cash and $1.0m (£0.5m) in OMG shares and a deferred consideration of up to $1.5m (£0.75m) in cash and OMG shares. The initial cash consideration is subject to an adjustment for the closing net assets position. The deferred consideration is subject to MVS meeting minimum revenue targets of over the next two years. Application will be made for 1,045,671 OMG shares, comprising the initial share consideration, to be admitted to AIM, which is expected to become effective on 1 May 2008.

Nick Bolton, Chief Executive of OMG plc, said,

“I am very pleased to be making this acquisition. MVS represents an exciting proposition for Yotta by providing a number of important benefits, including a profitable platform for expansion in the US and an opportunity to maximise data collection opportunities, not to mention growing further in its own right. The MVS team is great and their market knowledge is second to none. Bringing these businesses together gives me further confidence in Yotta’s growth prospects both in the US and globally.”

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