Transportation technology provider Cubic Corp. has acquired Sugar Land, Texas-based Trafficware for about $235.7 million in cash, according to an Oct. 24 statement.
Trafficware provides a fully integrated suite of software, Internet of Things devices and hardware solutions to improve customer safety and mobility. Cubic will integrate Trafficware into its Transportation Systems business unit.
Please help us welcome @Trafficware to the Cubic family. Trafficware’s intelligent, data-rich intersection management technology will enhance our ability to offer solutions to reduce urban congestion. And we can’t wait! #WeAreCubic #realITS #THISisITS https://t.co/kypz1Hb2Or pic.twitter.com/0rr71szN7P
— Cubic Transportation Systems (@CubicTS) October 24, 2018
“Trafficware’s intelligent, data-rich intersection management technology, combined with Cubic’s existing transportation capabilities, will enhance our ability to offer compelling solutions to reduce urban congestion,” Cubic Chairman and CEO Bradley Feldmann said. “The 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.”
Trafficware is expected to contribute approximately $50 million in sales in fiscal 2019 and $14 million to $15 million of Adjusted EBITDA, according to the statement. Cubic will finance the transaction from borrowings under its revolver.