KKR, a global investment firm, announced the completion of its acquisition of IQGeo, a geospatial software developer headquartered in the UK. KKR will combine its extensive technology and telecoms expertise to invest in the growth of the business by supporting international expansion, broadening its product range and strengthening its customer relationships.
KKR has acquired IQGeo for £333 million and will be building on the company’s strong revenue growth. Over the past five years, the IQGeo share price increased by more than 900% and revenues grew from approximately £10 million in 2018 to over £44 million in 2023.
IQGeo’s geospatial software and services support leading operators within the telecoms and utilities sectors to design and operate fibre and electricity networks. It is well positioned for ongoing growth within industries driven by rapidly increasing demand for fibre rollout, as well as the transformation of electricity grid infrastructure and the impact of increasing electrification.
Through investment in technology and organizational processes, IQGeo will scale its key operational areas, including sales and corporate development, to sustain its commercial momentum. KKR brings combined expertise from its investment through both its Global Impact and Next Generation Technology funds to help support IQGeo in this next stage of growth. IQGeo will also draw on KKR’s network to strengthen its relationships with customers deploying fibre and developing grid infrastructure, as well as pursue further organic and inorganic expansion opportunities to grow internationally and expand the product range available to its customers.
Commenting on the Acquisition, Richard Petti, CEO of IQGeo, added, “We are committed to the success of our customers and our employees. Thanks to them, we have built a thriving business that delivers award-winning innovative software for the telecommunication and utility industries worldwide. I also want to recognise the support of our investors in building the business and this acquisition is a milestone achievement for the company and the valuation makes clear the extent of our success. Partnering with KKR now gives us an even greater opportunity to accelerate investment in our people, processes, and products and increase our ability to respond to market momentum. It’s also important to us that there is close cultural alignment between KKR’s Global Impact and Technology Growth funds with IQGeo’s focus on innovation and mission to bridge the digital divide and build the net-zero energy networks of the future. Their investment will underpin the next phase of growth of IQGeo’s exciting journey.”
Commenting on the Acquisition, Rami Bibi, Managing Director and Head of EMEA for KKR Global Impact, said, “In our view, IQGeo is unique in its support for continued global efforts addressing the digital divide and transforming grid infrastructure, which is aligned with KKR’s strong focus of investing behind grid electrification for net-zero goals. To capitalise on the global growth potential ahead, increased investment and an acceleration of IQGeo’s strategy are imperative, and private ownership under KKR will help facilitate this.”
Patrick Devine, Managing Director on the Tech Growth team at KKR, added, “KKR’s global platform and track record of scaling leading software businesses, combined with our experience of investing in telecom and grid networks gives us the right tools and capability to support IQGeo, and we look forward to working closely with its management team to capitalise on the long-term opportunity ahead.”
This investment builds on KKR’s track record as a major global investor in telecoms and sustainability capabilities, particularly fibre deployment and the electricity grid infrastructure. This includes investing over $21.6 billion in technology-focused growth companies since 2014, having built a dedicated global team with deep technology growth equity expertise, as well as the Global Impact Strategy established in 2018 to take a focused and differentiated private equity investment approach and offer the potential for attractive risk-adjusted return opportunities in the global impact space.
