FirstGroup sells rail software unit Mistral Data to Tracsis for £48M
What's the deal? FirstGroup has agreed to sell Mistral Data Services to AIM-listed TracsisDealroom has a profile for this one. Try Dealroom → for an enterprise value of £48 million on a cash-free, debt-free basis. The consideration is payable in cash on completion, subject to customary adjustments.
What does Mistral do? Part of FirstGroup's First Rail division, Mistral develops software for the rail industry, integrating data from customer-facing websites, apps, train operators, and control centres. The tools aim to improve passenger experience and operational performance.
The numbers: Mistral's revenues grew from about £7 million in FY 2022 to about £13 million in FY 2026, with operating profit of about £4 million. FirstGroup expects a profit on disposal of about £46 million, treated as an adjusting item.
What changes for FirstGroup? The Group anticipates a roughly £4 million decrease in First Rail's FY 2027 adjusted operating profit and a 0.6p drop in adjusted earnings per share (FY 2026: 20.3p). It now expects free cash generation of about £435 million over the next three years.
Why sell now? The sale accelerates and enhances cash already guided within a £90 million inflow from Department for Transport train operating companies and related rail services. Proceeds will support UK bus and rail growth and shareholder returns.
"The sale of Mistral Data, which we have successfully grown into an attractive, high-quality asset, is another example of our ability to create and realise value as the UK transport sector evolves," said chief executive officer Graham Sutherland.
What could go wrong? Completion is conditional principally on clearance by the Competition and Markets Authority, and is expected no later than October 31, 2026.
The signal: FirstGroup is trimming a profitable software subsidiary to reinforce its balance sheet and concentrate on core UK bus and rail operations, where it reported revenue of £1.72 billion in FY 2026. The deal underlines how transport operators are treating in-house tech assets as capital to recycle rather than businesses to keep.
Read more: Cision
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