Cubic Corp. announced Nov. 27 that it has completed the acquisition of Serco’s Transport Solutions business for an enterprise value of £43.5 million ($70 million) subject to adjustment as set forth in the purchase agreement.
Cubic announced last June that it had entered into exclusive due diligence for the acquisition. Serco’s Transport Solutions business will become a part of Cubic Transportation Systems, a leading integrator of payment and information technology and services for intelligent travel solutions. Serco’s Transport Solutions business is primarily a UK-based transport technology and services business and had revenues in the last calendar year of approximately £42 million ($67 million).
For more than 20 years, Serco’s Transport Solutions business has specialized in the development and supply of complex traffic management systems for the monitoring and control of urban and intra-urban road networks, encompassing integrated traffic and incident management, decision support, bus tracking and passenger information through integrated user interfaces.
The business also provides safety camera and associated back office solutions as well as a complete capability for the installation and maintenance of intelligent transport systems and equipment, such as maintaining over a third of London’s traffic lights.
“We’re delighted that Serco’s Transport Solutions team today becomes part of the Cubic family,” said Steve Shewmaker, president of Cubic Transportation Systems and executive vice president of Cubic Corporation.
“The business has excellent specialist knowledge and capability in the enforcement, road and traffic markets, which is integral to our own NextCity vision of integrated solutions that help transport operators manage their operations and services and give travellers informed choices when deciding how and when to make their journeys. ”
“Additionally, Transport Solutions’ includes amongst its customers Transport for London and Transport for New South Wales, which are already Cubic customers, as well as other major organizations such as the Highways Agency and Transport Scotland. Taken all together, that business mix means the acquisition and subsequent integration of the business is a move that is both logical and exciting for Cubic.”
David Stretch, Serco’s partnership director for Transport said, “As part of Serco’s proactive portfolio management and following a strategic review of our UK transport operations, Serco has decided to divest its UK-focused Transport Solutions and London Streets Maintenance business. Transport continues to be a key market for Serco in which we are bidding for a number of major new transport contracts and where we will continue to deliver high quality services, drive innovation and pursue growth opportunities for our customers. I would like to thank colleagues for their hard work and commitment in building Transport Solutions into a successful business.”
Serco Transport Solutions employs 253 people across the UK and three in Australia with offices in Stockton on Tees, Beckton (East London), Belfast, Birmingham and Cumbernauld, near Glasgow, as well as in Sydney, Australia.