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Thursday, Mar 28, 2024

Financial Software Firm Moves into Map Apps

NetSol Technologies Inc. is broadening beyond its core business through a new partnership with a Scottish company that converts 2-D files into interactive 3-D maps. As of last month, NetSol of Calabasas holds a 15 percent stake in eeGeo Ltd., headquartered in Dundee, in exchange for a $1.1 million investment in the mapping firm. NetSol Vice President of Strategies Faizaan Ghauri said his company’s role will be to help eeGeo’s engineering team develop new products. “We are going to be building a lot of apps on top of their platform,” Ghauri said. Netsol has built its business around software for automotive leasing and financing, working with more than 200 clients in 30 countries. In addition to the San Fernando Valley headquarters, it has facilities in six other countries, including its main delivery center in Lahore, Pakistan. Fiscal second quarter results released in February reported net income of $875,000 (8 cents a share) compared with a net loss of $1.4 million (-14 cents) for the same quarter a year ago. Revenue increased 31 percent to $16.2 million. Privately held eeGeo was founded in 2010 to take 2-D mapping files and convert them into 3-D for use in retail, tourism, property management, education and advertising. It partners with five companies to provide the mapping data. A consumer app version is available for free while commercial users pay a license fee. “Going down to the level of detail of a desk in an office is how much detail these maps can offer you,” Ghauri said. Meetings between NetSol and eeGeo began six months ago. During the familiarization period Ghauri said it was apparent this would be a good match because eeGeo’s technology has its origins in video game development. Executives at NetSol also have gaming backgrounds that include work on Sony Corp.’s PlayStation console system, Rockstar Games and Evolution Studios. Lahore, the second largest metropolitan area in Pakistan, has a sizeable game development community, Ghauri said. That means employees at NetSol’s delivery center have a similar pedigree. “We saw this potential to tap into that rich history in Pakistan around game development and utilize it for an opportunity that we saw was disruptive with eeGeo,” he explained. NetSol’s core business will remain in the auto leasing sector. In December, the company signed a $100 million deal with an existing client to upgrade to the latest version of its software and expand into new markets. “That biz is always going to be there and is always going to be a focus,” Ghauri said. “We are looking at new opportunities where we can return shareholder value in interesting opportunities like eeGeo.” Ben Kuo, founder and editor of technology news website SocalTech.com of Westlake Village, said NetSol’s decision to expand into a new sector makes sense as there is great interest in the auto industry for mapping technology. For example, Uber Technologies Inc. last year acquired a portion of Microsoft Corp.’s map business and mapping technology startup deCarta. “Even though it is quite a different area, it is a fast-growing area that is related to their industry,” Kuo said.

Mark Madler
Mark Madler
Mark R. Madler covers aviation & aerospace, manufacturing, technology, automotive & transportation, media & entertainment and the Antelope Valley. He joined the company in February 2006. Madler previously worked as a reporter for the Burbank Leader. Before that, he was a reporter for the City News Bureau of Chicago and several daily newspapers in the suburban Chicago area. He has a bachelor’s of science degree in journalism from the University of Illinois, Urbana-Champaign.

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