LONDON, UK: Journeo plc (AIM: JNEO) has entered right into a conditional settlement to purchase the entire issued share capital of IGL Limited for an aggregate consideration of roughly £8.7 million.
IGL Limited, along with its subsidiaries, is a number one supplier of innovative show solutions and is the UK’s main rail passenger information equipment provider, with over 15,000 shows in operation.
Infotec services roughly eighty per cent. of the UK’s rail community and is one of many few UK show companies that designs, manufactures, tests and distributes its personal products, which include rail information shows for main, hub and small stations.
Approximately 2.19 million passenger journeys depend on Infotec’s merchandise each day and the Company’s merchandise are put in in 1,476 stations and vehicles throughout the UK and worldwide.
The acquisition is anticipated to be considerably earnings accretive to Journeo Plc and is anticipated so as to add roughly £12 million of gross sales and roughly £2 million of pre-tax revenue to the Enlarged Group within the primary full year following completion of the acquisition.
Journeo additionally announces that, so as to primarily finance the acquisition, the Company has conditionally raised gross proceeds of £7 million by way of a placing and subscription.
Pursuant to the acquisition, the Seller will obtain preliminary money consideration of roughly £6.2 million and £0.5 million payable in 476,190 new Ordinary Shares, plus deferred money consideration of £2.0 million, payable in two tranches previous to the date that’s 24 months following Completion.
Russ Singleton, Chief Executive Officer of Journeo Plc, commented: “We are delighted to announce the acquisition of Infotec, a chief within the rail passenger shows market.
The Fundraising enables Journeo to welcome new institutional and retail investors in addition to supporting existing shareholders in increasing the worth of their investment.
Both Infotec and Journeo have strong, organically-driven order books and the Acquisition will speed up Journeo’s growth into the rail market, which currently accounts for solely round 10% of Journeo’s 10,000 SaaS connections, offering recurring income through the Journeo Portal.
We envisage the addition of Infotec to the Enlarged Group will complement our bus and coach fleet operator options alongside our in-street passenger transport infrastructure and concurrently present cross-selling alternatives for each businesses.
The continued want to maneuver people from their personal-use cars into mass public and active transport modes is being pushed by substantial Government initiatives. One of the keys to modal shift is ensuring that transport data is comprehensible and the Acquisition will higher place Journeo to ship enhanced options to our customers that obtain this, aligned with extra alternatives for our team members and elevated worth for our shareholders”.
Journeo provides information systems and technical services to the UK public transportation sector and provides a vary of merchandise and services to its customers which include fleet managers, transport operators, airports, native councils and different transport authorities.
Journeo’s options assist public transport authorities to enhance their services, assist operators to enhance efficiencies and guarantee that public transport passengers can enjoy safe, safe and well-informed journeys. The Group has 110 devoted team members.