Listed transport tech firm Tracsis has acquired a London software company in a deal which could be worth 拢25.7m.
Leeds-based Tracsis, a provider of software and services for the rail, traffic data and wider transport industries, has acquired the entire issued share capital of London-based iBlocks.
Established in 2000, iBlocks specialises in the provision of smart ticketing solutions, automated delay repay and the development of mission critical back office systems that are used in the railway industry.
Tracsis said its directors believe iBlocks is 鈥渦niquely placed to help facilitate the move towards a paperless ticketing environment鈥�.
In the year ended 28 February 2020, iBlocks generated revenue of 拢3m, profit before tax of 拢1.1m and had net assets of 拢3.5m.
The acquisition consideration comprises an initial cash payment of 拢12.5m and the issue of 192,926 Tracsis shares with a value of 拢1.5m.
An additional payment of 拢3.2m will be made on a pound for pound basis to reflect the net current asset position of the business at completion.
Additional contingent consideration of up to 拢8.5m is payable subject to iBlocks achieving certain
“We are delighted to have come together with iBlocks, a business we have known for a number of years now,鈥� said Tracsis CEO Chris Barnes.
鈥淲e believe the unique technology offering that iBlocks has developed along with long established client relationships will open up an exciting new area of opportunity for Tracsis.
鈥淭he smart/account based ticketing market in particular is an area of the rail industry that will see significant future industry change and growth.
鈥淲e welcome the iBlocks management team and all staff to the Tracsis Group, and look forward to helping them achieve their growth aspirations as part of a larger organisation.”
Tim Brewer, director of iBlocks, commented:聽“This transaction marks the start of an exciting new chapter for the iBlocks business and our team.聽 Over the past 15 years, iBlocks has established a reputation in the rail industry as a provider of high-quality software products, which deliver unique, innovative and robust solutions for our customers especially within the smart ticketing and delay repay sectors of the industry.
鈥淏eing part of a larger group will enable us to unlock opportunities that will benefit the UK rail industry and accelerate our growth.”