Tracsis CEO steps up as the software company makes latest acquisition
The new chief executive officer of Tracsis, a software provider for the transport industries, has stepped up at the same time the company acquires a £3.7m addition to the business.
The company has acquired Hertfordshire-based Bellvedi, a business that supplies the rail industry with timetabling optimisation software. For the year to 31 March 2019, the company returned revenues of £1.6m, and pretax profits of £700,000.
Tracsis has acquired it for £3.7m which will be funded out of cash reserves and the issue of more than 45,000 shares prices at 648p.
An additional consideration of up to £7.9m is payable if Bellvedi achieves certain stretched EBITDA financial targets in the four years post acquisition.
John McArthur, outgoing chief executive officer of Tracsis plc, commented: “Tracsis has known the Bellvedi team for a number of years and has worked with them closely on a number of key projects. Bellvedi has a great product and complimentary customer base and their expertise in timetable planning and optimisation is second to none.”
Bellvedi were advised on the transaction by David Neate and Rob Johnson of Springboard Corporate Finance and Paul Mann, Andrew Gawley and Josh Headley of law firm Squire Patton Boggs.
David Neate commented “Bellvedi’s innovative software is market-leading and joining the Tracsis family at this stage in its development will enable the business to fully capitalise on the market opportunity. The deal structure which we negotiated will benefit both parties moving forward”.
Paul Mann said: “Bellvedi is an exciting, fast growing business and this deal – one of a number we’ve advised on in the technology sector in recent months – will be a catalyst for further expansion. We look forward to watching the business develop and prosper as part of a larger group.”
At the same time as this announcement, the company has today seen new CEO Chris Barnes take over his new role, with former boss and founder John McArthur stepping down from the board. He will continue to work with Tracsis in a part-time capacity focusing on mergers and acquisitions.
John McArthur commented: “It has been my privilege and passion to lead Tracsis over the past 15 years during which time the Group has grown and matured into the successful technology and services business we see today.
“My transition from CEO is a natural evolution for the Group and I am pleased to be handing the baton onto Chris at a time when our business is in great shape for the future. I wish to thank the entire Tracsis team for making my journey as CEO so enjoyable and I wish you all every success for the future.”
Chris Barnes, chief executive officer commented: “Firstly, I would like to thank John for his enormous contribution to the Tracsis business which he founded in 2004. I’m delighted to have been appointed as John’s replacement as CEO of the Tracsis Group and I’m excited to have the opportunity to lead the next phase of both organic and acquisitive growth for this technology led business.
“The Tracsis Group is well positioned for the future, has an industry leading software, hardware and consultancy product offering, a great team of people, a blue chip client base and operates across industrial sectors that are seeing significant growth and transformational change all of which will continue to drive strong future demand for our products and services.”
