Completion of Acquisitions
01 February 18
("Tracsis" or the "Group")
Completion of Acquisitions
Tracsis plc, a leading provider of software and services for the traffic data and transportation industry is pleased to announce that it has acquired the entire issued share capital of Travel Compensation Services Limited ('TCS'), Delay Repay Sniper Limited ('DRS') and S Dalby Consulting Limited (the holding company of TCS).
TCS is a software provider of enterprise delay repay solutions to the UK Rail Industry. The business has developed novel technology that allows train operators to automatically process large volumes of consumer claims arising from rail delays and in doing so lower the transactional costs involved whilst speeding up response times and helping eliminate fraud. The benefits to the rail industry are significant and in a short space of time TCS has already secured several major TOC customers.
DRS is a consumer facing web portal (www.delayrepaysniper.com) that enables rail passengers to quickly and easily submit valid claims under the delay repay scheme to rail operators. The business operates a subscription service model and is highly relevant to regular rail travellers and commuters who are often delayed many times per month and wish to forego the time and effort involved in submitting multiple individual claims.
The UK delay repay market is increasingly topical to transport groups, rail passengers and regulatory bodies and there is increasing consumer awareness set against a backdrop of rising rail fares. The delay repay scheme works to allow rail passengers to reclaim up to 100% of ticket values from a train operator depending on how delayed a service is. In recent years the back office burden on transport operators is significant as current methods for managing claims are largely manual. This has inevitably led to slow response times, incorrect refunds, and a material exposure to consumer fraud.
The TCS and DRS offerings are highly complementary to Tracsis' rail offering and will bring substantial cost benefits to our TOC client base whilst also improving customer satisfaction. The Directors of Tracsis believe this market is set for significant growth in the years ahead.
Based in Chelmsford, TCS and DRS employ nine members of staff, all of whom will remain with the business post transaction. In the year ended 30 September 2017, TCS and DRS generated revenue of £0.7m and a profit before tax of £0.3m. Under the terms of the acquisition there is a 3 year earn out period during which Tracsis expect both businesses to achieve significant growth.
John McArthur, Chief Executive Officer of Tracsis plc, commented:
"We are delighted to have completed these further acquisitions, which continues our proven strategy of acquiring well run, profitable technology businesses within the transport and traffic sector. Both TCS and DRS have excellent product offerings and superb customer satisfaction levels whilst offering significant potential for future growth. We welcome both TCS and DRS to the broader Tracsis Group."
Sarah Dalby, Managing Director of TCS and DRS, commented:
"We are very pleased to come together with Tracsis and believe this is a natural fit for both TCS and DRS given the existing Tracsis client base, their industry access and complementary software offerings. As part of a larger Group we look forward to growing our business to capitalise on the significant opportunities posed by the delay repay market and hope to bring tangible benefit to both transport operators and rail passengers alike."
For more information please contact:
John McArthur/Max Cawthra, Tracsis plc
Andrew Pinder/Seb Lawrence, Investec Bank plc
Tel: 020 7597 4000