By Wang Weiwei

As China's geographic information industry has been growing at an annual rate of more than 25 percent, new companies have mushroomed in the industry. Meanwhile, acquisitions and mergers have become more popular. On October 26, one day after the inauguration of China Association for Geographic Information Service, Founder International made an official announcement that it had completed the acquisition of Easymap, the integration of the two companies having started since the beginning of the year.

The Geographic Information Industry is a comprehensive industry based on modern mapping technology and information technology. It includes the GIS (geographic information system) Industry, GPS & Navigation industry, and Space Remote Sensing industry. It also encompasses the professional application of mapping technology and geographic information technology, LBS, geographic information service, and other new technologies and applications. 

Beijing Easymap Information Technology is a professional geographic information software provider that integrates and shares information through geological space information technology. The company specializes in the construction of geological space information service platforms for digital city and public safety industries. Making its first fortune by publishing maps, Easymap has become a big-time leader in the military geological information market. Why did the well-off Easymap choose to join Founder International?

Zhou Daliang, former chairman of the board of Easymap, will become director of the board and vice president of Founder International and managing director of the company's public safety and geographic information department after the acquisition. When talking about the merger, Mr. Zhou believes that an enterprise needs a broader market and brand support when it comes to a certain stage of its development. Easymap, with its expertise in technology service, and Founder International, with its expertise at market and brand operation, worked together to integrate its police geographic information service team. After the integration, Easymap, who used to provide software service only, is now capable for providing overall solutions that include hardware, software, and data service. The result of the integration can be seen from the improvement of its profit capability. According to Zhou Daliang, new contracts of Easymap has increased from RMB 100 million Yuan in 2010 to RMB 190 million Yuan in 2011, with sales revenue expected to increase from RMB 60 million Yuan to RMB 150 million Yuan, profit from RMB 14 million Yuan to 26 million Yuan, and employees from 419 to 523.  

Founder International, however, is interested in Easymap not only because of its police geographic information resources. As Guan Xianghong, CEO of Founder International, views it, the vertical business of public security geographic information technology is very important to Founder International. However, what is more valuable about Easymap is its geographic information technology and geological space information sharing service platform that has been built up after years' development. Guang Xianghong hopes to develop the platform in a horizontal way, which is to integrate it with the company's vertical businesses such as public security, intelligent transport, medicine care, finance, and media, helping Founder International to achieve its strategic goal of becoming a "complete IT service industrial chain". 

Undoubtedly, there will be more and more mergers like this that complements both parties and enables integrated development. Since 2009, China's geographic information industry has been developing exponentially. In retrospect, Cong Yuandong, secretary general of China's Association for Geographic Information Service, was full of sentiments, as the development of the geographic information industry in the past two years has exceeded the aggregated development of the industry in the 10 years prior to that. The yield of the industry this year is expected to reach RMB 150 billion Yuan. Zhou Daliang, who has been growing alongside the geographic information industry, believes that currently China's geographic information industry has entered a stage of transformation and integration. As the industry grows in volume, large enterprises, by cluster effect, will become stronger with vertical, horizontal, and mixed mergers, more new technologies and services will be integrated across industries, and more commercial opportunities will be created.