Sale of Events business

Tracsis (LSE: TRCS), a leading transport technology provider, announces that it has sold its Events Transport Planning & Management business (the "Events business") to UK private capital investment firm Connection Capital LLP ("Connection Capital" and the "Sale").

Highlights

Strategic rationale

Tracsis is executing a growth transformation strategy focused on building a higher-margin, scalable transport software product business. The Sale - removing a largely services-led business from the portfolio - is a material step towards that.

The Events business provides event traffic management for major outdoor events and fixed venues in the UK. It is a high-quality operation with a well-established market position, and operates largely independently with a distinct customer base and limited overlap with the Group's remaining operations.

It has been acquired by Connection Capital, a London-based private capital investment firm with experience backing established UK SMEs.

Principal terms of the Sale

Under the terms of the Sale, Connection Capital has acquired 100% of the issued share capital of Tracsis Events Limited for an enterprise value of £7.25m on a cash-free, debt-free basis.

The consideration has been satisfied in cash, subject to working capital adjustments.

Financial information

For the year ended 31 July 2025, the Events business generated revenue of c.£20.4m and adjusted EBITDA of c.£1.9m. It is currently reported within the Group's Data, Analytics, Consultancy and Events division.

Use of proceeds and outlook

The net cash proceeds will be used to reduce the Group's net debt following the anticipated completion of the acquisition of Mistral Data, announced on 29 July 2026, accelerating the deleveraging path set out in that announcement. The Board's capital allocation priorities are unchanged.

The Group expects to report trading for the 12 months to 31 July 2026 ("FY26") in line with market expectations, including the full year contribution of the Events business.

Further information will be provided in the Group's FY26 trading update on 27 August 2026.

David Frost, CEO of Tracsis, said:

"As part of our growth transformation strategy, we have been reviewing the alignment of our portfolio, and this divestment is an important outcome of that process. The Events business has built a strong position in its market. However, we believe it is better suited to an owner whose strategic priorities are more closely aligned with its next phase of growth. Following a rigorous process, we are confident this transaction delivers fair value for shareholders while providing a positive outcome for customers and colleagues.

Together with the recent acquisition of Mistral Data, this sale represents another significant step in reshaping the Group towards a higher-margin, more scalable software business with a growing proportion of recurring revenue. The proceeds will strengthen our balance sheet, support future investment in our strategic growth priorities, and accelerate the reduction of net debt."

The information contained within this announcement is deemed by the Group to constitute inside information under the Market Abuse Regulation (EU) No.596/2014.