TIDMTRCS
RNS Number : 5835E
Tracsis PLC
14 March 2022
14 March 2022
Tracsis plc
("Tracsis" or "the Group")
North American Rail Acquisition
Tracsis, a leading provider of software, hardware, data
analytics/GIS and services for the rail, traffic data and wider
transport industries, is pleased to announce that it has acquired
RailComm LLC ("RailComm") a North American based rail technology
software and services provider.
Headquartered in Fairport, New York and established in 1999,
RailComm provides mission critical automation and control solutions
that reduce costs, increase safety, and improve operational
efficiency for rail passenger/freight operators and rail served
ports/industrials. Its two core products are rail yard automation
and computer aided dispatching and it has a wide and diversified
client base across the North American market. The business has good
levels of annual recurring software revenues in addition to large
project delivery/systems integration work. The business employs
around 30 full-time staff, all of whom will remain with the
business post transaction.
The acquisition is in line with Tracsis' strategy of extending
its rail software footprint and expanding the addressable markets
for its products and services. In addition to the significant
growth opportunities that exist within RailComm's core rail
markets, we now have direct access to a long-established sales
network into a significant number of rail clients in the North
America market. This will enable Tracsis to progressively market
its existing portfolio of rail products and services, with Remote
Condition Monitoring the initial area of focus.
For the financial year ended 31 December 2021, RailComm
delivered revenue of $6.0m (GBP4.6m) including c$2.5m (GBP1.9m) of
recurring software revenue and generated an unaudited loss before
tax of $0.3m (GBP0.2m). It has a significant order book, and as a
result we anticipate good levels of revenue and profit growth going
forward. The business is being acquired on a debt free basis.
The acquisition consideration comprises an initial cash payment
of $11.5m (GBP8.8m) . Additional contingent consideration of up to
$2.7m (GBP2.1m) is payable subject to RailComm achieving certain
financial targets in the first full year post acquisition. This
cash will be held in escrow through that period. The consideration
will be funded out of Tracsis cash reserves.
Chris Barnes, Chief Executive Officer of Tracsis plc,
commented:
"This is an important strategic acquisition for Tracsis plc,
providing a platform onto which we can start to internationally
expand the Tracsis Group and its rail product portfolio via direct
access to the significant and growing North American rail
technology market. We are delighted to welcome all of the RailComm
team into the Tracsis Group and look forward to a successful future
working together".
Joe Forgione, President of RailComm LLC, commented:
"The RailComm team is very excited about joining the Tracsis
Group. Both businesses have a long history of driving innovation
via R&D built around long-term client relationships and we look
forward to expanding our ability to offer a much broader range of
rail technology solutions across our extensive client base in North
America."
Notes:
1. The US$ values quoted in this announcement are also shown in
GBPs by converting the US$ values at an exchange rate of $/GBP of
1.31.
2. The information contained within this announcement is deemed
by the Company to constitute inside information under the Market
Abuse Regulation (EU) No. 596/2014.
Enquiries:
Tracsis plc Tel: 0845 125 9162
Chris Barnes, CEO
Andy Kelly, CFO
finnCap Ltd Tel: 020 7220 0500
Christopher Raggett/Charlie Beeson, Corporate
Finance
Andrew Burdis, Corporate Broking
Alma PR Tel: 020 3405 0205
Rebecca Sanders-Hewett/David Ison/Joe Pederzolli tracsis@almapr.co.uk
Notes to editors:
-- Tracsis plc is a technology company and a leading provider of
software and hardware products, data capture and data analytics/GIS
services for the rail, traffic data and wider transport
industries.
-- Tracsis' products and services are widely used to increase
efficiency, reduce cost and risk, improve operational and asset
performance, improve safety management and decision-making
capabilities, and improve the overall customer experience for
clients and customers.
-- The Group is split into two principle operating areas built
around detailed industry knowledge and expertise:
- Rail Technology & Services: Software and
technology/product led business. It develops and supplies software
that solves complex resource, asset optimisation and control
problems for Train Operators and Smart Ticketing, Delay Repay and
other retail software to improve the customer experience for rail
users. It also develops remote condition monitoring hardware, data
acquisition software, safety and risk management software solutions
for rail infrastructure providers.
- Data, Analytics, Consultancy & Events : A largely services
led business that focuses on data capture, data analytics, GIS,
earth observation, data insights, consultancy, and event traffic
management within a range of transport and pedestrian rich
environments. The business provides technology/bespoke products and
data that underpins large scale intelligent transport system and
smart city planning and positive environmental decision making.
-- Tracsis has a blue-chip client base which includes all major
UK transport owning Groups, Network Rail, Passenger and Freight
Train Operating Companies, the Department for Transport, TfL,
multiple local authorities, major outdoor music and sporting event
organisers, and a wide variety of large engineering and
infrastructure companies. In North America our clients include
Class 1 rail freight companies, transit operators, shortline
railroads and several large rail served ports and industrials.
-- The business drives growth both organically and through
acquisition and has made seventeen acquisitions since 2008.
For more information on Tracsis please visit
http://www.tracsis.com
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