ITS (UK) Member Cubic Corporation has announced that it has entered into an agreement to acquire Advanced Traffic Solutions Inc. (“Trafficware”), a leading provider of intelligent traffic solutions for the transportation industry, for approximately $235.7 million in cash, subject to customary adjustments.
Based in Sugar Land, TX., Trafficware provides a fully integrated, innovative suite of software, Internet of Things (IoT) devices and hardware solutions that provide customers with enhanced mobility and improved safety. Trafficware will be integrated into the Cubic Transportation Systems (CTS) business unit. The acquisition is expected to close today, October 24, subject to customary closing conditions.
In fiscal year 2019, Trafficware is expected to contribute approximately $50 million in sales and $14 million to $15 million of Adjusted EBITDA. Cubic anticipates the transaction will be accretive to cash earnings per share in the first full year of operations, exclusive of transaction fees. Cubic will finance the transaction from borrowings under its revolver.
“Trafficware’s intelligent, data-rich intersection management technology, combined with Cubic’s existing transportation capabilities, will enhance our ability to offer compelling solutions to reduce urban congestion. This technology-driven acquisition of a leader in the transportation industry fits perfectly with our strategy to lead next‐generation intelligent traffic solutions that enable smart cars through smart infrastructure,” said Bradley H. Feldmann, chairman, president and chief executive officer of Cubic Corporation. “We welcome the Trafficware team to the Cubic family and are excited to add this growing intelligent transportation systems business to our portfolio.”
“This acquisition will strengthen Cubic’s NextCity strategy to solve the challenges of urban congestion through best-in-class solutions that optimize the use of transportation infrastructure and improve mobility for travelers,” said Matt Cole, president of CTS. “I look forward to realizing the synergies and benefits this acquisition will bring as we work with Trafficware’s strong management team to further develop Trafficware’s leading portfolio of solutions, integrate it with the Operations and Analytics pillar of our strategy, and give customers the benefits of Cubic’s broader solution portfolio.”
“As we continue to grow market share and move into larger agencies in the U.S. and abroad, Trafficware has faced the needs of multi-modal transportation. With Cubic’s leadership, particularly in transit, around the globe, we see many synergies with Cubic as we continue to aggressively grow our traffic management business organically and through acquisition,” said Jon Newhard, chief executive officer of Trafficware. “We are excited about joining Cubic as it is encouraging to be part of a company that shares our culture for innovation and absolute customer focus as well as our vision for building Smart Cities around the globe.”
As a company driving innovation in the traffic industry, Trafficware builds traffic management infrastructure for the next-generation of Smart Cities. Trafficware currently has the fastest-growing central management system in the transportation industry as well as adaptive traffic control technology; and most recently, Trafficware designed applications for the latest in Connected Vehicle technology for traffic signal systems. The company’s flagship Synchro® Studio suite helps improve traffic operations of all sizes and Trafficware’s Advanced Traffic Management System (ATMS) is used by more than 200 transportation authorities as the cornerstone of their central traffic management system.