TRANSPORT software group Tracsis yesterday revealed that it had completed an acquisition which will help it to secure more work in Australia.
Tracsis is joining forces with Sky High, which is the UK’s biggest provider of traffic analy- sis.
The boards of Sky High and Tracsis have agreed the terms of a recommended cash offer, which values Sky High’s entire issued ordinary share capital at around £3.28m.
An offer document has been sent to all Sky High shareholders, setting out the terms and conditions of the deal.
Mark Mattison, Grant Wilson and Martin Prowse, the directors of Tadcaster-based Sky High, are to acquire a total of 308,563 shares in Tracsis.
Tracsis is a Leeds University spin-out, which produces software that can prevent train derailments and delays.
John McArthur, the chief executive of Tracsis, said yesterday: “The combination of Tracsis and Sky High is an exciting opportunity as it adds considerable breadth, depth and scale to our existing offering.
“The acquisition not only widens the number of fields the group services within the transportation industry, but also importantly adds a new territory to its current geographic footprint.
“As the largest provider of traffic analysis and surveys within the UK, Sky High has significant stature in the market, a formidable reputation, and robust systems to meet the data and analysis needs of its enviable client list.
“Given our own success within the rail industry, which already includes survey and analysis work, we see great cross-selling opportunities of both services and technology to this new market, while expanding our reach overseas given the considerable presence Sky High has in Australia.
“We believe that this acquisition, while being immediately earnings enhancing, will also drive growth for the combined group and, in turn, provide further value to our shareholders.”
Mr Mattison, the chief executive of Sky High, said yesterday: “We welcome the opportunity to join Tracsis and see that, as part of a larger transport technology group, it will bring both immediate and longer term benefits to our clients and staff.
“The acquisition will ensure that Sky High is well placed to both grow our client base and continue to provide our current clients with a high quality and cost-efficient service.
“In addition, joining Tracsis not only grants us access to new technical capabilities that can be utilised within the highways sector, but also allows the business to re-focus management time and efforts on delivering growth and new product initia- tives.”
Earlier this month, Tracsis said it was setting its sights on international expansion to tap into growing markets in the US, New Zealand, Australia and Scandin- avia.