Leeds transportation data firm acquires SEP Events
Leeds-based Tracsis plc, a provider of software and technology led products and services for the transportation industry, has acquired the entire issued share capital of SEP Limited and SEP Events Limited (SEP).
Based in North Yorkshire, SEP is a provider of traffic planning and management services for the events industry.
Since becoming established in 1989, SEP’s client list has grown to include many of the UK’s largest outdoor entertainment and sporting fixtures, along with major agricultural events, air shows, and music festivals.
The directors believe that SEP is highly complementary to Tracsis’ existing Traffic & Data Services division. Both companies have [previously worked together, collaborating on major events such as Royal Ascot, T in the Park, The Grand National, and the Wings and Wheels air show.
In the financial year ending 30 September 2014, SEP generated revenue of £4m, an adjusted EBITDA of £400k and pre-tax profit of £300k. The business is debt free, and has cash balances at completion of around £500K, with tangible net assets of £600K.
SEP currently employs 30 permanent staff, all of whom will remain with the business following the transaction. In addition, the business deploys several thousand contract workers at its events throughout the year.
The acquisition consideration comprises an initial cash payment of £1.625m and the issue of 55,005 ordinary shares of 0.4p each in Tracsis at an issue price of 454.5p (a total value of £0.25m).
Deferred consideration of £100k is payable over two years with performance consideration of up to £600k is payable based on SEP achieving certain financial targets in the two years following the acquisition, giving a total consideration of up to £2.6m.
John McArthur, chief executive officer, said: “We are delighted to have completed this acquisition, our seventh since IPO, which continues our trend of acquiring well run, profitable, niche businesses within the traffic and transport sector. SEP is a well-established company which benefits from a prestigious client list, strong recurring revenue, and a very capable team of professionals.
“There are some great synergies between SEP and Tracsis and this partnership will strengthen our overall market position and bring enhanced benefits to the combined customer base. We welcome the SEP team into the enlarged Group and look forward to working with them.”
Mike Rodgers, managing director of SEP Limited, commented: “I am extremely pleased that SEP has joined the Tracsis Group - the company is now perfectly placed to enhance its service provision as part of a larger team, further strengthening our existing relationship with the Tracsis Traffic and Data division.”
Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →
Enjoy the read? Get Bdaily delivered.
Sign up to receive our popular Yorkshire & The Humber morning email for free.