Insider Media Limited

Derby-based Tracsis has completed the takeover of neighbouring MPEC Technology in a deal worth up to £3.4m, it confirmed today.

Tracsis, which provides software and consultancy services to the rail industry, said MPEC is an "exciting addition to the Tracsis Group".

MPEC, also located in Derby, is a niche developer and supplier of data logging and remote monitoring technology to the rail industry. Its main product is the SA380 data logger which records information from track side infrastructure on the railway such as signals and level crossings.

The deal involves an initial cash payment of £900,000, the issue of 200,000 ordinary shares in Tracsis at an issue price of 50p amounting to £100,000 and a deferred consideration of up to £1m, to be made over two years depending on the financial performance of MPEC during this period.

An additional consideration of up to £1.4m is also payable based on MPEC's performance.

John McArthur, chief executive officer of Tracsis, said: "We are delighted to have completed this latest acquisition, being our fourth in four years since our IPO in 2007.

"MPEC is an exciting addition to the Tracsis Group being what we believe to be a market leader in its respective field of data logging and remote monitoring equipment for the rail industry.

"We believe the business to be well run with a team of experienced employees and we are delighted to be working with them. We look forward to working together with the MPEC team to grow the MPEC business both in the UK and overseas."

Tracsis also has operations in Leeds.