Tracsis clinches SEP deal

LONDON (ShareCast) - (ShareCast News) - Software (Xetra: 330400 - news) and technology products provider Tracsis (Other OTC: TCIIF - news) has completed the acquisition of traffic planning and management services provider SEP (Shanghai: 600021.SS - news) in a cash and stock deal. The London-listed company has paid an initial £1.62m in cash and has issued 55,005 ordinary shares at 454.5p for a total value of £0.25m, with an additional £600,000 payable based on SEP achieving a number of financial targets within the first two years of ownership.

In the year to 30 September 2014, North Yorkshire-based SEP generated revenue of £4m, with profit before tax of £300,000 and earnings before interest, tax, depreciation and amortisation of £400,000.

Tracsis said the acquisition would be "highly complementary" to its existing traffic and data services division and will offer "strong cross-sell opportunities".

"We are delighted to have completed this acquisition, our seventh since IPO, which continues our trend of acquiring well run, profitable, niche businesses within the traffic and transport sector," said group chief executive John McArthur.

"SEP is a well-established company which benefits from a prestigious client list, strong recurring revenue, and a very capable team of professionals." Tracsis shares were up 0.43% to 454.45p at 0957 BST on Monday.