Completion of Acquisition

RNS Number : 7159H

Tracsis PLC

02 June 2011

 



Tracsis plc

("Tracsis" or the "Company")

Completion of Acquisition

Further to the announcement of 26 May 2011 ("Initial Announcement"), the Company confirms that it today executed an agreement with Robert Laurence Taylor, the owner and controller of MPEC Technology Limited ("MPEC") to acquire the entire issued share capital of MPEC.

As set out in the Initial Announcement, and as set out in MPEC's abbreviated accounts for the period ending 31 March 2010, MPEC had a net asset value of £513,240 on that date. During the same period, it also generated revenue of £818,813 and a profit before tax of £266,454 (as set out in unaudited management accounts for the period). The business is currently debt free.

The consideration comprises (i) an initial cash payment of £900,000; (ii) the issue of 200,000 ordinary shares in Tracsis at an issue price of 50p amounting to £100,000 ("Acquisition Shares") and (iii) deferred consideration of up to £1,000,000, to be made over two years depending on the financial performance of MPEC during this period.  Additional consideration of up to £1,400,000 is also payable which is reflective of the level of cash in MPEC and dependent on the actual net current assets of MPEC at completion, with the completion accounts being finalised over the coming weeks.

Application has been made for the new Acquisition Shares to be admitted to trading on AIM and dealings are expected to commence on 9th June 2011.  Following the issue of the Acquisition Shares, the number of Ordinary Shares in issue will increase to 24,035,588

John McArthur, Chief Executive Officer commented "We are delighted to have completed this latest acquisition, being our fourth in four years since our IPO in 2007. MPEC is an exciting addition to the Tracsis Group being what we believe to be a market leader in its respective field of data logging and remote monitoring equipment for the rail industry. We believe the business to be well run with a team of experienced employees and we are delighted to be working with them. We look forward to working together with the MPEC team to grow the MPEC business both in the UK and overseas."

For the purposes of the Financial Services Authority's Disclosure and Transparency Rules ("DTRs"), the issued ordinary share capital of the Company following this allotment consisted of 24,035,588 Shares with voting rights attached (one vote per Share).  There are no Shares held in treasury.  This total voting rights figure may be used by shareholders as the denominator for the calculations by which they will determine whether they are required to notify their interests in, or a change to their interest in, Tracsis under the DTRs.

For more information please contact:

John McArthur, Tracsis plc	Tel: [phone]
Katy Mitchell, WH Ireland Limited	Tel: [phone]

 

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