Tracsis (AIM:TRCS), the transport technology provider, has sold its Events Transport Planning & Management business to Connection Capital, a London-based private capital investment firm.
The enterprise value is £7.25m, paid entirely in cash on completion, subject to working capital adjustments.
The unit, which provides traffic management for major outdoor events and fixed venues in the UK, generated revenue of roughly £20.4m and adjusted EBITDA of about £1.9m in the year to 31 July 2025.
Net proceeds will go toward cutting net debt following the anticipated completion of Tracsis's acquisition of Mistral Data, announced 29 July, accelerating the deleveraging plan set out at that time.
Chief executive David Frost said the Events business "has built a strong position in its market" but is "better suited to an owner whose strategic priorities are more closely aligned with its next phase of growth."
The disposal removes a largely services-led operation from a portfolio Tracsis is steering toward scalable software products, lifting the Group's proportion of annual recurring revenue and margin profile.
Tracsis expects full-year trading to 31 July, including the Events business's contribution for the period, to land in line with market expectations.
A further update is due at the Group's FY26 trading statement on 27 August.
News Intelligence what this means for the company
Tracsis has divested its Events Transport Planning & Management business for £7.25m in cash to Connection Capital, with proceeds directed toward debt reduction following the Mistral Data acquisition announced 29 July. The unit generated £20.4m revenue and £1.9m adjusted EBITDA in FY25—a 9.3% EBITDA margin—but the sale reflects Tracsis's strategic pivot away from services-led operations toward scalable software products with higher recurring revenue and margins.
The sale removes a lower-margin services business and accelerates deleveraging post-Mistral, supporting the software-focused strategy. However, the £7.25m proceeds represent only 3.6× trailing EBITDA—a modest multiple for a profitable unit—and the full impact on net debt and FY26 profitability depends on Mistral's integration and the debt position at completion, both due for clarification on 27 August.
Insights assembled by AI. Editor-reviewed and grounded in tickstock’s coverage and proprietary knowledge graph.
Content is for informational purposes only, not financial advice.
