LONDON, UK: Journeo plc (AIM: JNEO) has entered into a conditional agreement to acquire the entire issued share capital of IGL Limited for an aggregate consideration of approximately £8.7 million.

IGL Limited, together with its subsidiaries, is a leading provider of innovative display solutions and is the UK’s leading rail passenger information equipment provider, with over 15,000 displays in operation.

Infotec services approximately 80 per cent. of the UK’s rail network and is one of the few UK display companies that designs, manufactures, tests and distributes its own products, which include rail information displays for main, hub and small stations.

Approximately 2.19 million passenger journeys rely on Infotec’s products every day and the Company’s products are installed in 1,476 stations and vehicles across the UK and worldwide.

The acquisition is expected to be significantly earnings accretive to Journeo Plc and is expected to add approximately £12 million of sales and approximately £2 million of pre-tax profit to the Enlarged Group in the first full year following completion of the acquisition.

Journeo also announces that, in order 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 receive initial cash consideration of approximately £6.2 million and £0.5 million payable in 476,190 new Ordinary Shares, plus deferred cash consideration of £2.0 million, payable in two tranches prior to the date that is 24 months following Completion.

Russ Singleton, Chief Executive Officer of Journeo Plc, commented: “We are delighted to announce the acquisition of Infotec, a leader in the rail passenger displays market.

The Fundraising enables Journeo to welcome new institutional and retail investors as well as supporting existing shareholders in increasing the value of their investment.

Both Infotec and Journeo have strong, organically-driven order books and the Acquisition will accelerate Journeo’s growth into the rail market, which currently accounts for only around 10% of Journeo’s 10,000 SaaS connections, providing recurring revenue through the Journeo Portal.

We envisage the addition of Infotec to the Enlarged Group will complement our bus and coach fleet operator solutions alongside our in-street passenger transport infrastructure and simultaneously provide cross-selling opportunities for both businesses.

The continued need to move people from their personal-use cars into mass public and active transport modes is being driven by substantial Government initiatives. One of the keys to modal shift is ensuring that transport data is understandable and the Acquisition will better position Journeo to deliver enhanced solutions to our customers that achieve this, aligned with more opportunities for our team members and increased value for our shareholders”.

Journeo provides information systems and technical services to the UK public transportation sector and supplies a range of products and services to its customers which include fleet managers, transport operators, airports, local councils and other transport authorities.

Journeo’s solutions assist public transport authorities to improve their services, help operators to improve efficiencies and ensure that public transport passengers can enjoy safe, secure and well-informed journeys. The Group has 110 dedicated team members.