Real-time traffic information service Trafficlink has been sold to partner company ITIS for £16.5 million. The deal provides an exit for mid-market private equity house Dunedin, which acquired Trafficlink in 2000.

Real-time traffic information service Trafficlink has been sold to partner company ITIS for £16.5 million. The deal provides an exit for mid-market private equity house Dunedin, which acquired Trafficlink in 2000.

Some £10.5 million in cash will be paid on completion of the deal from the acquirer’s existing resources. A further £6 million may be due within the next 18 months, depending on the acquired business’ performance.

The sale represents a threefold return for Dunedin over seven years, roughly equivalent to an IRR of 17 per cent.

Nick Somper, CEO of Trafficlink, and ‘all key management’ will remain with the business following the sale. Somper comments: ‘Our close relationship with ITIS has been a very real feature of our success and the consolidation of our data and technologies will enable us to offer unrivalled products and services to our existing customers.’

Trafficlink provides traffic data to Government, businesses and consumers through broadcasts. In the year to June the company reported revenues of £4.7 million and pre-tax profits of £560,000.