Tracsis Plc (TRCS), a provider of software for the transport industry, rose to the highest since its shares started trading in 2007 after agreeing to buy Sky High Plc (SKHG), the U.K.’s largest provider of traffic analysis and surveys.
The shares rose as much as 5.7 percent, and were up 5.4 percent at 184.5 pence as of 12:58 p.m. The volume of shares traded was five times the three-month daily average. The stock has more than tripled since the start of last year, lifting the Leeds, England-based company’s market value to 46 million pounds ($69.7 million).
Tracsis agreed to pay 15.25 pence a share, valuing Sky High at 3.3 million pounds, it said in a statement today. The offer was 77 percent higher than the average closing price over the past six months. Tracsis has made at least five acquisitions since 2007, according to data compiled by Bloomberg.
The combination of Tracsis and Sky High “adds considerable breadth, depth and scale to our existing offering,” Tracsis Chief Executive Officer John McArthur said in the statement. “We see great cross-selling opportunities of both services and technology to this new market, whilst expanding our reach overseas given the considerable presence Sky High has in Australia.”
Sky High’s independent directors agreed to vote 10.8 million shares, or 67 percent of the eligible shares, in favor of the transaction, according to the statement.
Tracsis software is used by rail companies to draw up crew rosters and optimize rolling stock use. Clients include Stagecoach Group Plc, operator of the U.K.’s busiest rail service, Network Rail, the owner of British train tracks and stations, and National Express Group Plc.
Sky High was founded in 1989 and its clients include government agencies, private sector companies and public sector groups. It has offices in Melbourne, Brisbane and Sydney. Its head office is in Tadcaster, about 15 miles (24 kilometers) from Tracsis.
Tracsis’s pretax profit for the six months ended Jan. 31 rose 50 percent to 1.7 million pounds, the company said in a statement on March 4.
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