Intergraph Acquired for Over $2 Billion

Intergraph provides geospatial software and specific to the security market, command and control/PSIM software. Intergraph has been acquired for $2.125 Billion by Sweedish firm Hexagon (publicly traded - HEXAB).

Intergraph reported overall 2009 revenue of $770 Million USD and projects about 7% growth for 2010. Integraph was acquired for approximately 3x earnings.

Hexagon, a provider of measuring systems reported 2009 revenue of approximately $1.6 Billion USD and has a current market capitalization of $4 Billion USD.

The acquisition presentation provides important details of Intergraph's financial performance:

• Integraph has 2 divisions - (1) Process, Power and Marine and (2) Security Government and Infrastructure (SGI)
• The SGI group (more relevant to security) reported $454 Million in 2009 revenue
• Within SGI, Public Safety and Security projects accounted for 32% of the group's revenue - an estimated $145 Million

Even narrowing Intergraph to specific security segments, Integraph is a very large player in the surveillance/security market. While it's hard to compare Integraph's offerings exactly to the emerging PSIM providers (Integraph tends to be higher end and far more expensive), Integraph's security revenue is likely 5-10x more than all the PSIM startups combined.