Transport solutions provider Tracsis has bought US-based rail technology software and services provider RailComm in a deal worth up to $14.2m (£10.9m).
The consideration includes an initial cash payment of $11.5m (£8.8m) and a deferred amount of up to $2.7m (£2.1m) based on the fulfilment of certain financial targets in the first full year after the takeover.
RailComm, based in Fairport of New York, delivers mission-critical automation and control solutions for rail passenger/freight operators and rail-served ports/industrials.
These solutions are designed to help decrease expenses while enhancing operational efficiency and safety.
Serving a wide range of customers across North America, RailComm offers two core products – rail yard automation and computer-aided dispatching.
RailComm’s full-time workforce of around 30 will be retained.
The acquisition is part of Tracsis’ strategy to reach addressable markets for its offerings, as well as expand its rail software footprint.
“In addition to the significant growth opportunities that exist within RailComm’s core rail markets, we now have direct access to a long-established sales network into a significant number of rail clients in the North America market,” Tracsis noted.
Tracsis CEO Chris Barnes said: “This is an important strategic acquisition for Tracsis plc, providing a platform onto which we can start to internationally expand the Tracsis Group and its rail product portfolio via direct access to the significant and growing North American rail technology market.”
In July last year, Tracsis won a multi-year contract to deliver its RailHub software product suite to an undisclosed customer in the UK.