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LONDON (Alliance News) - Tracsis PLC, which provides products aimed at helping the traffic and transportation industry to cut costs and improve efficiency, on Wednesday said it has acquired software development and IT company Ontrac for up to GBP19.5 million in cash, shares and deferred payments.
Ontrac, which is based in Gateshead and London, England, is a software development and information technology company with clients in the transport, construction, and local government sectors.
According to Tracsis, Ontrac works "extensively" within UK rail, where its products have been used to help with digitisation and information sharing.
"We are delighted to have completed this acquisition which continues our trend of acquiring well run, profitable, niche businesses that are complementary to the broader goals of Tracsis and our customer base. Ontrac is a well-established company with an excellent track record of technology delivery within the rail sector," John McArthur, Tracsis chief executive, said in a statement.
Ontrac made a pretax profit, adjusted for dividends and other payments to directors, of GBP2.4 million on revenue of GBP7.1 million in the year ended January 31, according to Tracsis. The acquired business has no debt. Ontrac's 30 permanent staff will be retained, Tracsis said.
Tracsis will pay an initial GBP6.0 million in cash and about GBP915,000 through the issue of 197,624 new shares at 463 pence each, along with a further GBP4.6 million equivalent to Ontrac's tangible net assets.
The remaining GBP8.0 million depends on if Ontrac hits financial targets.
Shares in Tracsis were up 2.0% at 472.00 pence on Wednesday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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