Inverness bus company D&E Coaches is set to be acquired by Highland Council.
The council revealed its intentions come as it looks to cut costs on the provision of home to school transport.
It said the high-cost statutory function has caused “significant budget pressures” in recent years.
Highland Council expects a deal for D&E to be concluded in the coming weeks.
Acquisition will improve cost efficiencies, says council
Highland Council said the acquisition would enable it to “accelerate provision of public transport services in the area”.
It said it would also “achieve operational cost efficiencies and reduce the risk of future contract cost increases”.
Vice-convenor and chair of economy and infrastructure committee Ken Gowans said: “I am delighted that negotiations have reached this stage.
“As we approach completion, I would like to reassure customers, staff and suppliers that the transition in ownership will be handled as smoothly as possible.
“I am genuinely excited for future public transport opportunities in the Highlands as a result of this expansion of our service.”
What does Highland Council acquisition mean for D&E Coaches future?
D&E is the largest private hire coach and minibus operator in the north of Scotland, with a fleet of 64.
Founded by husband-and-wife team Donald and Elizabeth Mathieson, the firm has more than 70 employees.
Mr Mathieson has over 42 years in the coach and transport industry and is still at the helm of the firm.
Son Bryan and daughters Amy and Gayle are also directors of the business.
Highland Council intends the company to continue to be run on a “business as usual” basis.
It also expects to reveal more details about the acquisition once “satisfactory completion of all due diligence” is reached.
‘We feel we’ve taken the company as far as we can’
Mr Mathieson revealed why he feels the sale would be the best for the future of the company.
He said: “D&E Coaches has been in business for almost three decades.
“We feel as a family firm that that we have taken the company as far as we can.
“Moving forward, we feel that the acquisition of D&E Coaches by the Highland Council is the best move for the company and everyone concerned.
“Including our staff and customers. We are also pleased that the company will move into local authority/public ownership.”
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