Integrated IT services and systems provider Cubic Corporation has entered an agreement to acquire Advanced Traffic Solutions Inc. (Trafficware) in order to expand its next-generation intelligent transportation systems (ITS) portfolio.
Based in Sugar Land, Texas, Trafficware provides a fully integrated, innovative suite of software, Internet of Things (IoT) devices and hardware systems that provide its worldwide customers with enhanced mobility and improved safety.
Following the acquisition for approximately US$235.7m in cash, 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 US$50m in sales and US$14m-US$15m of adjusted EBITDA to Cubic’s budget.
The company’s CTS business unit is a leading integrator of payment and information technology and services to create intelligent travel solutions for transportation authorities and operators. As part of its expansion into the Internet of Things (IoT) and smart city marketplace, CTS has developed the NextCity concept that envisions a fully integrated platform combining city management, operations and analytics with multimodal traveler payment and information.
Trafficware is also developing and building traffic management infrastructure for the next-generation of smart cities. The company currently has the fastest-growing central management system in the transportation industry, as well as adaptive traffic control technology. Most recently, Trafficware designed applications for connected vehicle technology integration with the latest 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 currently used by more than 200 transportation authorities as the cornerstone of their central traffic management system.
“As we continue to grow market share and move into larger agencies in the USA and abroad, we have 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.”
Matt Cole, president of CTS, noted, “This acquisition will strengthen our 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. 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 their leading portfolio of solutions, integrate it with the Operations and Analytics pillar of our strategy, and give customers the benefits of our broader solution portfolio.”
Bradley H Feldmann, chairman, president and CEO of Cubic Corporation, added, “Trafficware’s intelligent, data-rich intersection management technology, combined with our 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.”