Rail information display tech firm acquired at 12.4x profits

IGL Limited, a company that provides rail passenger information equipment covering most of the UK rail network, has been acquired by public transport information tech firm Journeo Plc in a deal worth £8.7 million. The deal represents slightly over a 12.4x multiple of IGL’s £0.7 million pre-tax profit for the year ending September 30 2021.

IGL and its subsidiaries, which trade as Infotec, operate more than 15,000 passenger information displays, covering around 80 per cent of the UK rail network. The firm designs, manufactures, tests and distributes its products, including rail passenger information displays for stations.

The company says that its products aid nearly 2.2 million passenger journeys every day and are used in 1,476 stations and vehicles in the UK and internationally. It is approved by Network Rail and also serves a range of customers including Siemens, Transport for Wales and NYSE-listed Outfront Media.

Infotec’s recent projects include door departure displays on London’s newly opened Elizabeth Line, LED array displays at London Victoria and Waterloo stations and a contract for displays on 535 of New York City’s new Kawasaki R211 subway trains.

Journeo said that it expects the acquisition of Infotec to add around £12 million in revenue and £2 million in pre-tax profits in first full year after completion. In the year to September 30 2021, Infotec generated revenue of £5.8 million and had total assets of around £12.1 million.

The deal was primarily funded through a placing and subscription of 6.6 million new Journeo shares on the AIM, raising £7 million, and a retail offer to the firm’s existing shareholders.

Commenting on the acquisition, Journeo CEO Russ Singleton said: “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 per cent 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.”

Singleton added: “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.”


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