Torotrak agrees licence deal as it invests £3m in F1 engineer

ENGINEER Torotrak yesterday completed a licencing agreement with Allison Transmission for £6m, as it snapped up a stake in Flybrid, which makes technology for Formula One cars.

Allison will pay £6m for the exclusive right to manufacture and sell Torotrak’s gearless traction drive systems in commercial vehicles, as well as buying 8.2m shares – a five per cent stake – in the firm for £2.5m.

However, the Allison licence does not cover Torotrak’s other commercial deals, including one with Indian vehicle giant Tata Motors.

Separately, Torotrak paid £3m to acquire a 20 per cent stake in Flybrid, which is a pioneer of flywheel technology used in F1 racing cars.

The London-listed company also has an exclusive option to acquire the remaining 80 per cent of the firm by the end of the year.

Chief executive Jeremy Deering said the Allison agreement and Flybrid investment marked a “true turning point” for the company.

Torotrak shares jumped yesterday on the news, closing up 19.79 per cent at 28.75p.