Transport technology provider Tracsis has disposed of one of its divisions days after agreeing an £48 million acquisition.
The listed Leeds company has sold its events transport planning and management business to Connection Capital for £7.25m cash.
Last week Tracsis said it had agreed to acquire Mistral Data, a wholly owned subsidiary of FirstGroup plc.
This morning it said its events arm is a largely services-led business that is ‘not aligned with the group’s focus on scalable application software products for the transportation sector’.
The cash proceeds will be used to reduce the group’s net debt following the anticipated completion of the Mistral Data acquisition.
For the year ended 31st July 2025, the events business generated revenue of £20.4m and adjusted EBITDA of £1.9m.
“As part of our growth transformation strategy, we have been reviewing the alignment of our portfolio, and this divestment is an important outcome of that process,” said David Frost (pictured), CEO of Tracsis.
“The events business has built a strong position in its market. However, we believe it is better suited to an owner whose strategic priorities are more closely aligned with its next phase of growth.
“Following a rigorous process, we are confident this transaction delivers fair value for shareholders while providing a positive outcome for customers and colleagues.
“Together with the recent acquisition of Mistral Data, this sale represents another significant step in reshaping the group towards a higher-margin, more scalable software business with a growing proportion of recurring revenue.
“The proceeds will strengthen our balance sheet, support future investment in our strategic growth priorities, and accelerate the reduction of net debt.”