Leeds tech firm makes €6m acquisition
Leeds software business Tracsis has acquired Irish data analytics company Compass for up to €6 million.
The deal includes Compass Informatics Limited (Ireland) and Compass Informatics UK Limited and marks the company’s first overseas acquisition.
The transaction comprises €3.15m in cash and around €350,000 in shares, with a further cash payment of around €500k when the deal completes.
An additional consideration of up to €2m will be paid subject to Compass achieving certain financial targets in the following three years.
Tracsis provides software and services for the traffic data and transportation industry while Dublin-based Compass was founded in 1997 and provides systems development and data analytics services.
Compass’ 50 permanent staff will remain with the business.
Last week Tracsis chief executive John McArthur announced that he is to stand down with Chris Barnes, current managing director of Ricardo UK’s automotive consulting division, replacing him.
McArthur said of the deal: “We have known the Compass team for a number of years now and are delighted to have completed this transaction which is a natural fit for our traffic and data services division.
“Coming together with Compass will strengthen the product and service offerings to our client base in the UK and also benefit those existing clients retained by Compass in Ireland.
“This is a further significant milestone in our strategy of improving our data service offering. We welcome the whole Compass team to Tracsis, and look forward to future successes together.”
Compass MD Gearoid O’Riain commented: “We are thrilled to have completed this transaction and to be joining forces with Tracsis.
“Compass has an established position with our domestic Irish market and our highly respected clients, and has aspirations to further grow our presence in the UK market – which provides a far larger market opportunity.
“Working as part of the Tracsis Group allows us to make this jump and we look forward to the significant growth opportunities that lie ahead.”