Cabcharge Australia Limited
(ASX:CAB) has inked a deal to buy Blue Mountains Bus Company for $26.5 million.
The taxi payments company says it has entered into an agreement to buy the business to expand its own bus operations in New South Wales.
Blue Mountains Bus Company currently operates an outer metropolitan bus service in the Blue Mountains region, joining the western fringe of metropolitan Sydney.
The business owns three depots, operates a fleet of 101 buses and coaches and generates most of its revenue from contract services with the remainder from charter.
Cabcharge advises the purchase remains subject to the necessary regulatory approvals and final due diligence.
Cabcharge Australia increased its net profit by 8 per cent to $36 million in the first half of the 2014 financial year.
