Microsoft snaps up Multimap

Online mapping provider Multimap today became the latest firm to join the Microsoft empire after announcing its sale to the world’s most powerful technology company.

Multimap – one of the UK’s top 10 visited internet sites – was bought for an undisclosed sum, but is thought to see founder and majority shareholder Sean Phelan bank a significant haul from the deal.

Mr Phelan, who set up Multimap in 1996, held a 50% shareholding in the firm and had reportedly already raised almost €2.64m from the sale of a 25% stake to investors just three years after launch.

Today’s announcement sees Mr Phelan part company with Multimap, although chief executive Jeff Kelisky will remain with the group following the sale to Microsoft.

Microsoft said the deal would further expand its existing mapping and location offerings, which include Virtual Earth and Live Search.

The move comes after an acquisitive year for Microsoft.

The group bought a 1.6% stake in social networking site Facebook for $240m in October, just months after making its biggest acquisition yet, with the $6bn purchase of US online advertising firm aQuantive.

Multimap gives Microsoft access to its increasingly popular online map service and the group’s business-based 1,200-strong client list, which includes household names such as Asda, Argos, Hilton Hotels and Foxtons estate agents.

Sharon Baylay, general manager of Microsoft’s online services group, said: “This acquisition will play a significant role in the future growth of our search business and presents a huge opportunity to expand our platform business beyond the UK and globally.”

She added the group aimed to grow the Multimap service offering on both PC and mobile devices, while also combining Microsoft’s capabilities, such as aerial map photographs and 3D images.

Multimap is the most visited map site in the UK, claiming to receive more than 10 million users and deliver more than 190 million page views each month.

But it also has a presence in 48 countries, with offices in Australia, America, South Africa and Turkey, besides its London presence.

Mr Phelan initially ran the company from home single-handedly, only recruiting staff after he made the first deal to bring in outside investors.

The group, which employs around 120 people in the UK, is reported to be on track to make €18m in turnover this year.