TransportTech group Journeo has sealed the acquisition of IGL Limited for £8.7 million.

IGL Limited and subsidiaries IGL and Infotec provide display solutions to the UK rail passenger industry, with more than 15,000 displays in operation. 

Infotec services approximately 80% of the UK’s rail network and is one of the few UK display companies that designs, manufactures, tests and distributes its own products, which include rail information displays for main, hub and small stations. 

Infotec says approximately 2.19 million passenger journeys rely on its products every day, across 1,476 stations and vehicles across the UK and worldwide. 

Journeo plc, an information systems and transport technical services group, expects the acquisition to add approximately £12m of sales and £2m of pre-tax profit in the first full year following completion.

In order to primarily finance the deal, Journeo has conditionally raised gross proceeds of £7m by way of a share placing. It is also looking to raise £350,000 from retail investors via the Bookbuild platform. 

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The deal is conditional upon shareholder approval.

“Both Infotec and Journeo have strong, organically-driven order books and the acquisition will accelerate Journeo’s growth into the rail market, which currently accounts for only around 10% of Journeo’s 10,000 SaaS connections, providing recurring revenue through the Journeo Portal,” said Journeo CEO Russ Singleton.

“We envisage the addition of Infotec to the enlarged group will complement our bus and coach fleet operator solutions alongside our in-street passenger transport infrastructure and simultaneously provide cross-selling opportunities for both businesses.

“The continued need to move people from their personal-use cars into mass public and active transport modes is being driven by substantial government initiatives.  

“One of the keys to modal shift is ensuring that transport data is understandable and the acquisition will better position Journeo to deliver enhanced solutions to our customers that achieve this, aligned with more opportunities for our team members and increased value for our shareholders.”

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