Cubic acquires GRIDSMART for $87 million
ITS (UK) member Cubic Transportation Systems has announced the acquisition of GRIDSMART Technologies, Inc, a market-leading, technology-driven business with a differentiated video tracking offering in the ITS market, for approximately $87 million in cash, subject to customary adjustments.
GRIDSMART specialises in video detection at the intersection utilising advanced image processing, computer vision modeling and machine learning along with a single camera solution providing best-in-class data for optimising the flow of people and traffic through intersections.
For full calendar year 2019, GRIDSMART is anticipated to contribute approximately $35 million in sales and $8 million of Adjusted EBITDA. Cubic anticipates the transaction will be accretive to cash earnings per share (EPS) in the first full year of operations, exclusive of transaction fees. Cubic will finance the transaction from its existing credit facilities.
“GRIDSMART’s industry-leading video tracking solution at the intersection is a key addition to our growing Intelligent Traffic Management portfolio to reduce congestion. It is complementary to our recent acquisition of Trafficware, both of which are cash EPS accretive in first full year of operations,” said Bradley H. Feldmann, chairman, president and chief executive officer of Cubic Corporation. “We welcome GRIDSMART to the Cubic family and look forward to their contribution in executing our company’s strategy and purpose to make a positive difference in people’s lives.”
“Detection is the largest and fastest growing segment within the intelligent traffic management market and is critical to enabling smart intersections that can optimize the flow of people and goods through cities, which is core to the Operations and Analytics pillar of the NextCity strategy. This strategic investment in GRIDSMART will not only enhance our growth profile through synergies with Trafficware but also strengthen Cubic’s Surface Transport Management solution offering” said Matt Cole, president of Cubic Transportation Systems.
“Advanced traffic management build on Smart Sensors is a key to efficient and responsible city management. As this need continues to grow not only in cities across the U.S. but also throughout the world, we look forward to seeing the synergies and growth opportunities of our solutions utilizing Cubic’s market leadership and international presence,” said Bill Malkes, chief executive officer of GRIDSMART. “We are pleased to become a member of the Cubic family where GRIDSMART’s vision to improve one billion lives with intelligence will continue in alignment with Cubic’s overall purpose.”
GRIDSMART is a market-leading business in the Intelligent Transportation Systems market, delivering a single camera sensor for intersection actuation and performance management with horizon-to-horizon view, including the center of the intersection, with its fisheye lens. Its iconic Bell Camera is the world’s first single-camera solution for intersection actuation, data collection and situational awareness. Furthermore, GRIDSMART is the only system to track vehicle trajectory from approach through the center of the intersection to exit. Based in Knoxville, TN, GRIDSMART has counted and classified more than 43 billion vehicles through 54 million hours of real-world video processing in 7,000 intersections spanning across 1,200 cities around the world.