Cubic paid nearly $87 million in cash to acquire Gridsmart
U.S company Cubic has announced the acquisition of Gridsmart Technologies for approximately $87 million in cash.
Gridsmart’s system tracks vehicle trajectory from approach through the center of the intersection to exit. Based in Knoxville, the company says it 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.
“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 Feldmann, chairman, president and CEO of Cubic, in a statement. “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 vision. 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.
In October 2018, Cubic entered into an agreement to acquire Advanced Traffic Solutions, aka Trafficware, which provides intelligent traffic solutions for the transportation industry, for about $235.7 million in a cash transaction. Trafficware provides an integrated suite of software, internet of things devices and hardware solutions in the mobility segment.
“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.
