Singapore Technologies Engineering (ST Engineering) has entered into an agreement to acquire all the ownership interests in TransCore for US$2.68bn. It is hoped that the acquisition will accelerate ST Engineering’s growth in the smart mobility sector.
TransCore is a leader in the transportation industry in North America. It provides technical solutions and engineering services for applications such as next-generation electronic toll collection, congestion pricing, intelligent transportation systems (ITS), back-office solutions and RFID products. TransCore is contracted to deliver a congestion pricing project in Manhattan, New York, the first ever in the US.
“The smart city space has been an important strategic focus area for ST Engineering,” said Vincent Chong, group president and CEO of ST Engineering. “TransCore is a strong strategic fit for us, and its road transportation solutions will complement and enhance our suite of smart mobility rail and road solutions.”
According to ST Engineering, TransCore’s electronic toll collection, congestion pricing and ITS solutions are complementary to ST Engineering’s smart, integrated mobility solutions and will result in a comprehensive suite of world-class smart mobility offerings for customers.
The combined businesses will continue to focus on technology and innovation centering on next-bound transportation technologies, backed by ST Engineering’s technology know-how and engineering core as well as TransCore’s deep capabilities that include a range of patents and IP rights in electronic toll collection, congestion pricing and ITS solutions.
The two companies also hope that the acquisition will strengthen their commitment to sustainability. TransCore’s transportation solutions are designed to reduce traffic congestion and lower vehicle emissions, which align to ST Engineering’s commitment to leverage technology and innovation to help cities deal with the impact of urbanization and climate change.
“With this acquisition, our smart city businesses will be better positioned to capture growth at the intersection of urbanization, digitalization and sustainability,” added Chew Men Leong, president of urban solutions at ST Engineering.
The acquisition transaction is expected to close by the end of the first quarter of 2022, subject to regulatory approvals, customary closing conditions and approval from ST Engineering’s shareholders at an Extraordinary General Meeting to be convened.