Yesterday Intergraph announced it’s being acquired by some buyout firms. The $1.3 billion price compares to FY 2005 revenue of $576.8 million. While the price is a premium over the previous day’s closing price for its shares ($44 versus $37.36/share), the share price was at low point for the year earlier this summer, just above $30/share. Also, early in 2006 the share price was almost $52. Going private in this manner is an alternative several tech companies are taking, citing the difficulties of regulations and managing investor expectations.

I recently talked with Peter Batty, chief technology officer of Integraph and was impressed with his plans for its geospatial solutions moved through its Security, Government & Infrastructure division. On Tuesday, the company announced a new version of G/Technology, for geofacilities management with operational support and service delivery applications. Integraph has a decent product portfolio and customer base. Batty understands very well the potential of geospatial capabilities in business and government. These are growth markets and I think Intergraph ought to continue to fare well with them. Intergraph can now focus on customers and solutions they need rather than quarterly targets. Public investors surely undervalue companies such as Intergraph in the geospatial arena because it is relatively unknown and its work is behind the scenes of its customers.

Sept. 27, 2006 Update: Intergraph Clears Review Under Hart-Scott-Rodino Antitrust Improvements Act in Connection with Its Acquisition by an Investor Group