Is Intermap (TSX:IMP) a buy right now?

Beacon Securities analyst Russell Stanley says Intermap Technologies’ (Intermap Technologies Corporation Stock Quote, Chart, News, Analysts, Financials TSX:IMP) planned acquisition of PCI Geomatics Group adds image-processing capabilities without changing the company’s pursuit of large national mapping contracts.

In a July 30 update, Stanley maintained his “Buy” rating and $3.00 target on Intermap after the company announced plans to acquire PCI for $11-million in cash.

“We are maintaining our estimates and $3/sh PT pending the filing of a material change report in the coming days,” Stanley said.

The analyst said the acquisition does not change Intermap’s pursuit of work under Indonesia’s One Map program or other national mapping programs. Potential catalysts include contract wins and Q2 results, expected around Aug. 20.

PCI, based in Markham, Ont., was founded in 1982 and has offices in Canada, the United States and the U.K. The company provides commercial geospatial image-processing technology, with more than 750 proprietary algorithms supporting imagery from more than 500 satellites.

Stanley said the acquisition vertically integrates PCI’s satellite and aerial image processing with Intermap’s digital elevation models, enabling analysis-ready geospatial intelligence from raw Earth observation imagery for commercial and defence applications.

About 60% of the combined company’s pro forma revenue is expected to come from recurring commercial subscriptions and repeat contracted licences.

Intermap management said the transaction should be accretive to commercial revenue growth, EBITDA and cash flow. Both boards have approved the deal, and shareholders representing more than 81% of PCI’s stock have agreed to support it. Closing is expected after a special meeting of PCI shareholders, with PCI’s website pointing to late August.

PCI’s recent products include faster in-orbit image processing and UrbanSAR, a satellite monitoring tool that detects building movement floor by floor across city corridors. Stanley said  UrbanSAR could be relevant to construction, infrastructure and insurance customers.

Stanley is also monitoring the Indonesia project schedule. The issue notice intention to award date has been pushed to July 31 from July 24, while the targeted contract signing date is now Sept. 2.

The schedule website now shows scoring is awaiting a No Objection Letter from the World Bank, which suggests progress. But Stanley cautioned that repeated delays highlight the risk of having one customer represent a large share of expected revenue.

Stanley expects Intermap to generate Adjusted EBITDA of $9-million on revenue of $30-million in fiscal 2026, improving to Adjusted EBITDA of $14-million on revenue of $43-million in fiscal 2027.

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