FirstGroup has completed the sale of rail technology specialist Mistral Data to Tracsis in a deal worth £48 million, further strengthening the group's balance sheet and supporting future investment across the UK transport market.
Mistral Data, previously a wholly owned subsidiary of First Rail, provides software solutions that consolidate data from real-time railway operational systems. The platform is widely used by train operators and Network Rail to enhance operational performance and improve the passenger experience across the rail network.
The acquisition represents a strategic addition to Tracsis' growing rail technology portfolio, bringing with it a business that has demonstrated strong growth over recent years.
Since FY2022, Mistral Data has almost doubled its revenue, increasing from approximately £7 million to around £13 million in FY2026. Over the same period, the business delivered operating profits of approximately £4 million, reinforcing its reputation as a high-performing asset within FirstGroup's rail division.
Under the terms of the transaction, FirstGroup received consideration of £48 million, subject to customary completion adjustments. The proceeds will be used in line with the group's capital allocation strategy, including investment in UK growth opportunities and continued shareholder returns.
The sale highlights the increasing value being placed on data-driven rail technology as operators seek to improve reliability, operational efficiency and passenger satisfaction. It also reflects FirstGroup's ongoing focus on portfolio optimisation while retaining capital flexibility to support expansion across its core bus and rail operations.
Graham Sutherland, FirstGroup Chief Executive Officer, said:
"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.
"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."
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