Leeds software firm Tracsis plc reveals €6m acquisition

Leeds-headquartered software business Tracsis plc has announced its acquisition of Irish data analytics company Compass for up to €6m.

The deal, which includes Compass Informatics Limited (Ireland) and Compass Informatics UK Limited, is Tracsis’ first acquisition overseas.

It is expected to boost the firm’s traffic and data services division, while also bringing cross-sell potential to existing transport clients.

The transaction will be settled with €3.15m in cash and around €350k in shares, with a further cash payment of around €500k to be paid when the deal completes.

An additional consideration of up to €2m will be paid subject to Compass achieving certain financial targets in the three years after its acquisition.

Tracsis provides software and services for the traffic data and transportation industry.

Dublin-based Compass was founded in 1997 and provides systems development and data analytics services. In the year to September 30 2018, it generated a pre-tax profit of €600k against a revenue of €4.8m, the majority of which comes from transportation, asset management, planning and environmental customers.

Compass employs around 50 permanent staff, all of whom will be remaining with the business.

Tracsis plc CEO John McArthur said: “We have known the Compass team for a number of years now and are delighted to have completed this transaction which is a natural fit for our traffic and data services division.

“Coming together with Compass will strengthen the product and service offerings to our client base in the UK and also benefit those existing clients retained by Compass in Ireland. This is a further significant milestone in our strategy of improving our data service offering. We welcome the whole Compass team to Tracsis, and look forward to future successes together.”

Compass MD Gearoid O’Riain commented: “We are thrilled to have completed this transaction and to be joining forces with Tracsis.

“Compass has an established position with our domestic Irish market and our highly respected clients, and has aspirations to further grow our presence in the UK market – which provides a far larger market opportunity.”

He added: Working as part of the Tracsis Group allows us to make this jump and we look forward to the significant growth opportunities that lie ahead.“