Transport technology provider Tracsis has completed its £48m acquisition of rail software specialist Mistral Data after securing clearance from the Competition and Markets Authority (CMA), while reporting full-year trading in line with market expectations.

Mistral Data expands Leeds-based Tracsis's presence in the UK rail software market, adding cloud-native products and increasing the proportion of recurring revenue within the business. The deal forms part of the company's strategy to become a more focused software and data technology company.

The acquisition follows the purchase of Vesputi, the disposal of the events business and the completion of the 'One Tracsis' operating model transition, as it continues to prioritise higher-margin, scalable software and data services.

The acquisition was funded through a combination of existing cash resources and a £38.7m drawdown under Tracsis's £40m revolving credit facility.

Shares of the AIM listed firm were up between 7% and 8% in morning trading, reaching around £3.43-£3.45.

The Events Transport Planning and Management division, which provided transport planning and operational services for major events, was sold to Connection Capital for £7.25m in cash. The disposal completed on 31 July, with proceeds received on 3 August.

Tracsis said it was now focused on integrating Mistral and capitalising on increased investment in rail technology, driven by demand for greater efficiency, productivity, safety and improved customer experience.

For the year ended 31 July, revenue is expected to rise to around £85.5m from £81.9m a year earlier, while adjusted earnings are forecast to increase to approximately £13.5m from £12.6m.

CEO David Frost said: "The group has delivered full-year performance in line with market expectations and ahead of FY25. I am pleased with how we have continued to successfully balance disciplined near-term delivery with progress against our strategy to deliver long-term, higher-margin growth.

"The acquisition of Mistral Data represents an important milestone in this journey. It brings complementary product capabilities, modern cloud-native technology and increased recurring revenues, while further strengthening our leadership position in the UK rail software market.

"Looking ahead, Tracsis is better positioned than ever, with a portfolio aligned to attractive long-term growth markets, a higher proportion of recurring revenue and an increasing emphasis on scalable software products. Our priority is now to integrate Mistral Data successfully and capitalise on the significant opportunities ahead."

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