A real-time traffic information provider has expanded its operations after buying its closest rival in a multi-million pound deal.

A real-time traffic information provider has expanded its operations after buying its closest rival in a multi-million pound deal.

ITIS Holdings plc has added complementary data sources to its existing offering after buying traffic and travel information company Trafficlink for £16.5 million.

The terms of the transaction included £10.5 million paid on completion, which was paid in cash funded from ITIS’ existing resources. The balance is deferred until June 2009 and will be paid in line with performance.

Trafficlink was sold by private equity firm Dunedin, which has held a stake in the company since 2000. This is Dunedin’s twelfth exit in the past two years and it generated a return of three times the original investment. The firm’s other recent disposals include Letts Filofax, Caledonian Building Systems, Celtic Inns and Zenith Vehicle Contracts.

ITIS’ chief executive, Stuart Marks, said this deal is an important part of the firm’s strategy of maintaining its leadership in the UK market. “We have worked closely with management at Trafficlink for more than five years and believe that by consolidating our data formally we will be able to offer a wider range of products and services, especially in emerging technologies, such as digital radio.”

Dunedin was advised on the disposal by Livingstone Partners, with Olswang providing legal services.

ITIS provides traffic incident and travel information, such as journey time forecasts and real-time updates. It provides its information to luxury marques, such as Land Rover, Lexus, Porsche and Rolls Royce.

Trafficlink provides real-time journey information to 42 million people each week, with its clients including the BBC and Highways Agency. In the year to July 2007, it made a pre-tax profit of £560,000 from a £4.7 million turnover.