$50m potential for ipernica subsidiary

West Perth-based IP outfit ipernica says it could generate $50 million a year from government agencies in Australia after subsidiary NearMap licenced its Google Earth-like services to the City of Swan.

The first licensee comes some 14 months after ipernica acquired NearMap, which provides current photomaps that offer multi-angled views of aerial imagery.

City of Swan GIS coordinator Andrew Mugge said the council uses NearMap to check on construction activity, identify compliance issues for developments and identify environmental hazards.

"We no longer have to send staff members out to sites we can check it on the internet," he said.

"It will save us time and money and allow us to provide an even better service for our rate payers."

ipernica said it was offering NearMap's product on a subscription basis with federal and state government agencies able to subscribe for $100,000 each year and local governments for $25,000.

"On this basis, NearMap believes the market for Australia-only Government licences is approximately $50 million per year," ipernica said.

"NearMap anticipates a significant number of Government agencies will subscribe, a substantial portion of which will be renewed on an annual basis, creating significant recurring revenue streams.

"NearMap has constructed its licencing model so that it is able to be easily replicated in other countries, and will commence expansion of coverage of cities across the world once its Australian operations are profitable.

"NearMap expects to eventually cover 20% of the world's population in 700 cities across the world."

Shares in ipernica today closed up two cents to 14 cents.