USA-based RFID (radio frequency identification) pioneer Neology Inc. has announced it has entered into an agreement to acquire the tolling and automated license plate recognition (ALPR) business of 3M’s Traffic Safety and Security Division.
Neology is a subsidiary of SMARTRAC, a portfolio company managed by One Equity Partners (OEP), a middle-market private equity firm. Netherlands-based SMARTRAC is one of the world’s leading developers, manufacturers and suppliers of RFID products and Internet of Things (IoT) solutions, and acquired Neology in 2011. The new Neology-3M transaction is expected to close by the third quarter of 2017, subject to customary closing conditions, regulatory approvals and consultation or information requirements with relevant works councils. Terms of the private transaction were not disclosed.
Neology is a leading provider of integrated systems for the tolling, electronic vehicle registration (EVR), and public safety market. The company is a pioneer in the development of passive RFID technology, owning significant intellectual property (IP), which covers important pieces of the Electronic Toll Collection (ETC) value chain, such as RFID tags, lane controllers, and back office processing capability.
The 3M tolling systems that Neology will acquire include high-quality RFID readers and tags, automatic vehicle classification systems, lane controller and host software, and back office software and services. It will also gain a full spectrum of mobile and fixed cameras, software, and ALPR technology and services. The two businesses are highly complementary, and combining their technologies will enable customers to benefit from integrated end-to-end solutions in the ETC market. Clients will be able to move seamlessly to new tolling technologies, with all the needed equipment supplied by the new, combined and comprehensive organization.
“The entire Neology team is excited to become part of this winning combination,” said Francisco Martinez de Velasco, president and CEO of Neology. “As we join forces with 3M’s tolling and automated license plate recognition business, we will become a full-service provider of tolling and vehicle identification products and solutions along the entire value chain. This will enhance our ability to develop highly innovative and integrated solutions to meet our customers’ evolving needs.”
Dr Jörg Zirener, OEP’s managing director, commented, “Combining 3M’s tolling and ALPR business with Neology is a perfect example of how OEP builds leading companies by executing transformative business combinations. The combined business creates a market leader with a broad range of best-in-class products and excellent customer relationships.”
