TagMaster, a supplier of data solutions and advanced sensor systems for smart cities within traffic and rail, has agreed to acquire the RFID-focused North American components business of Austrian traffic technology company Kapsch TrafficCom.
The acquisition will be carried out through TagMaster’s US subsidiary, Sensys Networks, and will more than double the company’s revenue in North America, it noted.
The Kapsch North American Components business (KNAMC) employs approximately 65 people and is based in Mississauga, Ontario, where manufacturing operations date back to 1977.
It develops, designs, manufactures and services transponders and multi-protocol readers. Its first transponder came off the production line in 1992, and more than 117 million transponders made in Mississauga have since been delivered to customers across North America.
The purchase price is approximately SEK 195m (€17.6m/ US$19.7m). The acquisition is subject to customary closing conditions and is expected to complete during the first quarter of 2027, after which the business will be consolidated into TagMaster’s financial statements.
Tolling products for the whole market
KNAMC’s product portfolio covers the tolling transponder and reader requirements of the entire North American market. Its TDMA transponders are regarded as the gold standard within the E-ZPass Group, a consortium of tolling agencies across 20 states in the eastern US. The group promotes seamless interoperability across its systems using Kapsch’s TDM-protocol transponder.
The business’s multi-protocol readers are widely deployed across the US and Canada, and can accurately read all tolling transponders in North America at highway speeds. KNAMC has been an E-ZPass supplier continuously since 1994.
TDMA transponders also serve the commercial trucking sector, allowing enrolled heavy goods vehicles to bypass state-operated weigh stations for a more efficient and environmentally friendly journey. As part of the deal, Sensys Networks will be the preferred provider of 915MHz components to Kapsch in support of its current and future tolling integration projects.
Strengthening the US ITS position
The addition of KNAMC’s RFID-based tolling products represents an important step in TagMaster’s continued focus on growth in the US market. Over the past 20 years, Sensys Networks has established itself as a leader in accuracy and reliability in vehicle detection and traffic data solutions. The acquisition expands its offering with a well-established portfolio that commands a significant market share and gives it access to an extensive customer network of toll operators across the US and Canada.
The deal also positions TagMaster to meet growing demand for intelligent transportation systems (ITS) solutions based on multi-sensor systems that combine multiple technologies.
Jonas Svensson, CEO of TagMaster, said: “We are very pleased to take this transformative step in our growth strategy, as Kapsch’s tolling products strengthen our position in the US ITS market. The acquisition adds a complementary customer network in key states across the US, including some customers that already have indirect relationships with Sensys Networks. These new products will enable us to establish additional customer relationships and create opportunities to offer our broader portfolio of ITS solutions. Our background and expertise in RFID technology, which dates back to the founding of our business in 1994, put us in a strong position to further develop and grow the business in the North American market.”
Sensys Networks Inc. will acquire all shares and assets relating to Kapsch’s North American components business. The acquired business will be fully integrated, with Sensys Networks’ existing nationwide sales force marketing KNAMC’s entire product portfolio and building its offerings into new and existing solutions.
