Garmin Licenses 3D Map Models from Intermap

Garmin Ltd. (NASDAQ:GRMN)) has entered into a three-year license agreement with Intermap Technologies (TSX: IMP.TO). The agreement calls for Intermap to provide accurate 3D elevation digital map data for the United States and Western Europe. Garmin has scheduled products utilizing Intermap’s NEXTMap data for the first half of 2010.

The 3D maps, according to Intermap, will give Garmin the power to provide uniformly accurate and highly detailed map data for its marine GPS products. Garmin joins a number of other leading GPS companies that have also licensed the technology. These include Magellan, owned by MiTAC Digital Corporation, and TomTom N.V. (AEX: TOM2) subsidiary, TeleAtlas.

Intermap, which bills itself as a 3D digital mapping and geospatial solutions company, creates high-resolution 3D digital models of the earth’s surface. And to do this right, it has remapped entire countries with the latest national map databases. For the highest map accuracy it uses its own proprietary airborne Interferometric Synthetic Aperture Radar (IFSAR) technology. With that technology, it produces digital elevation models, with horizontal and vertical accuracy levels down to a half meter, orthorectified radar images and a host of other geospatial-enabled products.

Intermap’s other products include TerrainFit. This technology lets planners remove buildings, trees and other obstructions from a 3D rendered map to create “bare bones” 3D models. Then, with the bare 3D model, professionals such as harbor, port and river planners, can create new designs as they would look in their natural settings.

Intermap’s map technology and its deal with Garmin have created a stir. Although Intermap is not expected to see improvements in revenue from the agreement immediately, its stock climbed after news of the license agreement. Hovering at around $1.60 per share before the announcement, it spiked up over the $2.00 point afterwards.

Demand for NEXTMap is coming from new emerging applications in 3D visualization, automotive, aviation, engineering, environmental planning, GIS, GPS maps, hydrology, insurance risk assessment, oil and gas, renewable energy, wireless communications, and transportation markets.