Applied Card Technologies: Fujitsu buys ACT to accelerate transport revenues

Fujitsu is improving its strategic positioning in the growing Transport sector with the purchase of Wiltshire-based ACT (Applied Card Technologies Limited). ACT has for several years collaborated with Fujitsu which now looks to invest in the company's technology to extend its scope and reach.ACT (http://www.weareact.com/) has a broad solutions portfolio offering commercial transport ticketing, concessionary and tourism ticketing systems, loyalty programmes and a citizen smart card. All these solutions conform to the ITSO standard for ticketing systems and are built from a range of modular, proprietary products. Accounts for 2013 showed revenue of £7.4m and pre-tax profit of £624k. The company employs about 90 people.The underlying market for ACT's solutions is strong and gaining momentum as travel companies and local authorities look to increase the value of their services to their users. This is driving initiatives to improve inter-operability between transport systems and to widen the range of services available through these schemes. There is certainly a lot of scope as the Fujitsu "Digital-Inside-Out" report published in January made clear. The transport industry was way below other sectors, including the public sector, in terms of the usage of and satisfaction with digital services.Fujitsu is a careful and only occasional acquirer of companies, highlighting the high regard that the Fujitsu management has for ACT's people, technology and track record. ACT will continue to be run as a separate, autonomous business subsidiary. We estimate that around 10% of Fujitsu's UK business is already derived in this sector. In addition, Fujitsu also has a strong presence in the retail sector and technology in several areas of these sectors is converging. Although ACT is quite small in revenue terms it could well give a significant boost to Fujitsu's fortunes in this increasingly digitalised sector.Subscribers to TechMarketView's research services can read a more detailed discussion of this deal in this HotViewsExtra