Member Article

Leeds’ Tracsis announces acquistion of Manchester firm for £4.5 million

Leeds-based Tracsis, supplier of technological solutions to the transport industry has confirmed that it has acquired Manchester-based Datasys Integration Limited for a total consideration of £4.525 million.

Datasys provides rail management software systems, business applications and hosting services for the majority of the UK’s train operating companies.

Its client base includes all of the major transport owning groups such as First Group, Go-Ahead, Stagecoach, National Express, Arriva, and Virgin.

The principle activity of the business is software development, sales and licensing with revenues predominantly derived from products that assist train operators capture, report and analyse the root causes of delays and other performance critical information. The vast majority of Datasys revenue comes from long term recurring software leases.

Datasys generated revenue of £2.27 million, an EBITDA of £554k and a profit before tax of £298k in its unaudited accounts for the year ending 31 May 2013.

The business is, according to the report, debt free, and has cash balances at completion of c. £1.3 million, with tangible net assets of c. £400k.

Datasys employs 17 staff, all of whom will remain with the business post transaction with the exception of departing shareholder directors who are not involved with day-to-day operations.

John McArthur, chief executive officer, commented: “We are delighted to have completed this acquisition, our sixth since IPO, which continues our trend of acquiring well run, profitable, technology businesses within the transport domain.

“Datasys is a well-established player within the UK rail market with a strong product suite, an excellent customer base and a great team.

“There is a strong overlap between Datasys and Tracsis and both companies are respected providers of high value technology solutions within the transport industry.

“This partnership will strengthen our overall market position and bring benefit to our customer base. We welcome the Datasys team into the enlarged Tracsis Group and look forward to working with them in the future.”

This was posted in Bdaily's Members' News section by Clare Burnett .