Multimap is one of the world’s leading providers of online mapping and location-based services. The company delivers online maps, point-to-point driving directions and geo-spatial (“where’s my nearest?”) searches to more businesses and consumers than any other supplier in Europe.

One of Multimap’s early investors, now part of Virgin Media, expressed an interest in exiting their investment for strategic reasons. After a selection process involving several boutique advisory firms specializing in technology, Multimap selected FirstCapital as its exclusive financial advisor. The dual track process involved exploring not only raising financing to buy out Virgin and fund further growth, but also co-ordinating with potential acquirers who expressed an interest in buying the company outright.

There were two particular challenges that required skilled positioning. Firstly, Multimap’s revenues were split two ways – business to business (B2B), mainly through charging by the number of map impressions, and business to consumer (B2C), which were largely advertising revenues. Secondly, there was a lot of change in the industry at the time making it very difficult to predict what might happen. FirstCapital worked to ensure that for both of these issues, discussions and presentation materials reflected the opportunities they presented rather than the problems.

FirstCapital invested considerable time making sure that all the parties engaged in the process remained on a compatible timescale in order to keep all options open until a final decision could be made, and in analysing the different options to assist Multimap in its decision making. Working with Multimap’s lawyers, FirstCapital prepared the pre-bid information and managed subsequent discussions through to receiving best and final offers, following which Multimap entered into exclusive discussions with Microsoft.

In December 2007, just seven weeks after entering into exclusive discussions, Multimap was bought by Microsoft for an undisclosed sum. Multimap’s chief executive and other senior managers remained with the business following the sale, benefitting from an incentive to do so, while founder Sean Phelan was able to secure a significant capital gain and to indulge his passion for sailing.

www.multimap.com | View case study

Testimonials

"FirstCapital had the commitment and tenacity to manage a broadly based, international sale process for Multimap, dealing with the world's top players in IT. They were thoroughly professional, adding value throughout a complex process, and on hand for support whenever we needed them. We are delighted with the result."
Sean Phelan, Founder, Multimap