Tracsis, an IT software provider serving the transport sector, has acquired RWA, a Loughborough-based supplier of consultancy services to the rail sector, for an initial £600,000.

Tracsis, an IT software provider serving the transport sector, has acquired RWA, a Loughborough-based supplier of consultancy services to the rail sector, for an initial £600,000.

The deal is a reverse takeover that will be financed through an initial payment of £580,000 and the issue of some 1 million shares. An additional payment of up to £145,000 in cash and almost 280,000 shares will be paid if the company hits its targets.

The deal aims to offer a wider range of products to a more diverse client base in the rail sector.

HW Corporate Finance acted as reporting accountant to the acquirer, having also undertaken this role for the company’s AIM admission in November 2007.

The team was led by Andy Sumner, the partner responsible for HW Corporate Finances’ transaction services in the Northwest, supported by Nick Gittings.

Sumner said: “The transaction provides Tracsis with an opportunity to enhance its product offering within the rail sector, as well as enhancing the skill set, experience and business development capability of the existing Tracsis team.

Rosenblatt provided legal advice to the acquirer. The team was led by corporate finance partner Tom Ferns, who was assisted by Louise Eldridge and Matthew Dumbrell together with the firm’s property, intellectual property and tax teams.

Ferns said: “We acted for Tracsis in connection with their admission to AIM and were delighted to work with them again with their first acquisition.”