Pennant International acquires Bedfordshire-based Track Access Productions

Training technology firm Pennant International has acquired Bedfordshire-based business Track Access Productions as part of an effort to "significantly enhance" its existing rail offering, add recurring revenues and further diversify its business lines.

Pennant International stated the consideration payable in respect of the acquisition will be made up of an enterprise value of £585,000, plus an amount of roughly £389,000 in respect of TAP's "free cash".

A completion payment of £638,610 has been settled, while the balance of the overall consideration, comprising a deferred payment of £175,500 will fall due 12 months after completion.

The AIM-listed group added that the acquisition, which it expects to add approximately £850,000 to revenues in 2023, had been funded entirely from its existing cash resources.

Chief executive Phil Walker said: "I am delighted to confirm the acquisition and to welcome the TAP team into the Pennant Group. TAP is an excellent business with a long-standing, trusted reputation in the UK rail market and we look forward to working together to integrate TAP into Pennant's growing rail offering."

As of 0955 BST, Pennant shares were up 5.36% at 38.98p.

Reporting by Iain Gilbert at Sharecast.com