LONDON (Alliance News) - Tracsis PLC on Thursday said it has acquired Cash & Traffic Management Ltd for up to GBP2.6 million.
The traffic data provider said the acquisition consideration comprises an initial cash payment of GBP1.3 million, which will be funded out of Tracsis cash reserves, and an additional payment of GBP450,000 to reflect the net current asset position of the business.
The company also said it intends to issue 26,334 shares at a price of 589 pence each, to a value of GBP150,000.
Tracsis shares were untraded on Thursday, last closing at 601.00p each.
Additional contingent consideration of up to GBP750,000 is payable subject to Cash & Traffic Management achieving certain stretch financial targets in the two years post acquisition.
Cash & Traffic Management is a provider of event traffic planning and admission control the UK's event clients. In the year ended to the end of February 2018, Cash & Traffic Management generated revenue of GBP5.5 million and pretax profit of GBP350,000.
The company believes that Cash & Traffic Management is highly complementary to the Tracsis' Traffic & Data Services division and will lead to margin improvement in the fullness of time.
"We are delighted to come together with Cash & Traffic Management which is a well-established business working in a related area to our SEP operation that has been very successful for Tracsis," said Tracsis Chief Executive John McArthur.
SEP Ltd is a wholly owned subsidiary of the Traffic & Data Services division of Tracsis.
"We welcome the Cash & Traffic Management team to the Tracsis and look forward to growing the combined business in future," added McAthur.
Tracsis (TRCS)