"Highly strategic moment": Yorkshire firm to buy rail software arm of FirstGroup for £48m
Leeds-based transport technology provider Tracsis has agreed a £48m deal to buy a rail software provider service owned by public transport giant FirstGroup.
Tracsis is to acquire Mistral Data, a technology innovation arm of FirstGroup, which has a portfolio of software and data solutions designed to help train companies communicate with passengers, manage demand and revenue, run day-to-day operations, monitor rolling stock, and turn operational data into insight.
The deal is expected to be completed by the end of October, subject to clearance from the Competition and Markets Authority.
Tracsis said “industry trends – including the transition to Great British Railways – and sustained pressure on operators to improve punctuality, efficiency and passenger experience, are accelerating demand for integrated, data-driven software and the replacement of legacy and in-house systems”.
David Frost, CEO of Tracsis, said: “The proposed acquisition of Mistral Data is a highly strategic moment for Tracsis.
"Mistral Data is a high-quality business in the market we know best, with products that complement rather than compete with our own. Its products are built on a modern, cloud-native platform that delivers strong recurring revenues and high margins. Together, these attributes accelerate our transition to a scalable software product business.
"It comes at a time of structural change across the UK rail industry. As the transition to Great British Railways gathers pace, alongside cost pressure and rising passenger expectations, operators need smarter, more integrated tools to support safer operations, improve punctuality, protect revenue, keep fleets running and enhance the passenger experience – with less reliance on fragmented legacy in-house systems.
"We believe the combined group will be well placed to meet this demand, bringing together complementary capabilities across planning, operations, passenger experience and data, to create a broader and more relevant proposition for UK rail customers.
"We look forward to welcoming the Mistral Data team to the group and to driving significant long-term value for our shareholders.”
For the 12 months ending March 31 2026, London-headquartered Mistral Data generated revenue of around £13m and adjusted EBITDA of about £4m, representing an adjusted EBITDA margin in the region of 30 per cent.
Tracsis said the acquisition is “expected to be materially earnings-enhancing and margin-accretive from completion while increasing the group’s proportion of Annual Recurring Revenue”.
Mistral provides business-critical software to seven UK train operating companies and the acquisition will mean the combined group will serve 22 of the nation’s 24 rail operators.