Leeds-based transport technology company Tracsis has agreed to acquire Mistral Data from FirstGroup in a cash transaction valued at £48m on a debt-free basis.
Mistral Data was established in 2010 as the technology innovation arm of FirstGroup. The business supplies cloud-native software to the UK rail industry across four core areas: customer and revenue management, rail operations and staff communications, asset management and data platforms, and business intelligence and cloud security.
The acquisition will expand Tracsis’s customer base from 20 to 22 of the UK’s 24 train operating companies, adding software contracts across seven operators. In the financial year to 31 March 2026, Mistral Data generated revenue of £13m and adjusted EBITDA of £4m, with approximately 85% of revenue recurring under long-term agreements.
The £48m enterprise value will be paid in cash upon completion, subject to customary adjustments and approval from the Competition and Markets Authority. Funding will be drawn from existing cash reserves and an expanded revolving credit facility, which has been increased to a total capacity of up to £40m and extended by one year.
Following the sale, FirstGroup expects to realise a profit on disposal of £46m, alongside a £4m reduction in First Rail’s adjusted operating profit for the 2027 financial year.
David Frost, chief executive of Tracsis, described the transaction as a highly strategic moment: “Mistral Data is a high-quality business in the market we know best, with products that complement rather than compete with our own. Its products are built on a modern, cloud-native platform that delivers strong recurring revenues and high margins. Together, these attributes accelerate our transition to a scalable software product business.
“We believe the combined group will be well placed to meet this demand, bringing together complementary capabilities across planning, operations, passenger experience and data, to create a broader and more relevant proposition for UK rail customers.”
Graham Sutherland, chief executive of FirstGroup, said the transaction was: “another example of our ability to create and realise value as the UK transport sector evolves. The sale proceeds will further strengthen our balance sheet, supporting continued growth in attractive UK bus and rail markets and meaningful returns to our shareholders.”
Tracsis projects that the core addressable UK rail software market will grow at approximately 5% per annum through to 2029.
Tracsis previously expanded its rail software capabilities through strategic business acquisitions, including its purchase of rail technology provider OnTrac. That earlier acquisition is relevant to the current transaction because it established Tracsis’s operational IT software footprint across Network Rail and train operators, providing the framework for its broader software integration strategy.
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