11th Mar 2020 10:22
(Alliance News) - Tracsis PLC on Wednesday said it has acquired software company iBlocks Ltd for an initial cash payment of GBP12.5 million plus the issue of GBP1.5 million worth of shares.
iBlocks provides smart ticketing and automated delay repay solutions, and develops back office systems used by the Rail Delivery Group, the wider community of train operating companies and the rail supply chain in the UK, Tracsis said.
The traffic data & transportation services firm said it will pay GBP12.5 million, funded from its own cash reserves, and will issue 192,926 shares at GBP7.775 each, worth a total of GBP1.5 million.
Tracsis shares were trading 0.3% lower at 700.75 pence each on Wednesday morning in London, meaning the 777.5p issue price of the new shares was at a premium. Tracsis has a market capitalisation of GBP202.2 million.
Following admission of the new shares, Tracsis's share capital will comprise around 29.1 million shares.
An extra payment of GBP3.2 million will be made to reflect iBlock's net asset value on completion of the transaction. In the year to February 28, iBlock posted pretax profit of around GBP1.1 million on revenue of GBP3.0 million. Net assets as the end of the period stood at GBP3.5 million.
Tracsis said it also will pay up to GBP8.5 million, subject to iBlocks achieving certain financial targets in the three years post-acquisition.
"We are delighted to have come together with iBlocks. We 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. The smart/account-based ticketing market in particular is an area of the rail industry that will see significant future industry change and growth.," said Tracsis Chief Executive Chris Barnes.
By Ife Taiwo; [email protected]
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