Sirit to be acquired by Federal Signal

Leading provider of radio frequency identification (RFID) technology, Sirit, and Federal Signal Corporation have signed a definitive agreement whereby Federal Signal will acquire all of the issued and outstanding common shares of Sirit for cash consideration of CDN$0.30 per share (US$0.29) by way of a court approved plan of arrangement under the Business Corporations Act (Ontario).
February 1, 2012 Read time: 2 mins

Leading provider of radio frequency identification (RFID) technology, 495 Sirit, and 38 Federal Signal Corporation have signed a definitive agreement whereby Federal Signal will acquire all of the issued and outstanding common shares of Sirit for cash consideration of CDN$0.30 per share (US$0.29) by way of a court approved plan of arrangement under the Business Corporations Act (Ontario). The transaction has a total equity value of around CDN$49.5 million (US$48.0 million).

The CDN$0.30 per share cash purchase price represents a premium of 37 per cent over Sirit’s 30-day average closing stock price and a premium of 60 per cent over Sirit’s 60-day average closing stock price.

According to Federal Signal, the combination of Sirit’s RFID technology with Federal Signal’s detection and classification technology (acquired in the December 2009 purchase of 529 Diamond Consulting Services) and existing PIPS automated license plate recognition technology, immediately transforms it into a leader in ITS.

“We are excited about this transaction with Sirit, as it further strengthens Federal Signal’s best-in-class product portfolio and advances our stated strategy of driving growth through our Public Safety Systems platform,” said William Osborne, Federal Signal's president and CEO.

“Sirit, Diamond Consulting Services and 37 PIPS Technology have a proven record of success in jointly delivering superior technology-based client solutions. We are committed to investment in research and development to maintain Sirit’s reputation for technical excellence and with the addition of Sirit’s talented employees, we look forward to further differentiating Federal Signal’s Public Safety Systems offering,” Osborne said.

“We are thrilled to be joining Federal Signal and are excited by the opportunities we will have as part of a larger organisation with greater financial resources and access to a wider customer base. The combination of Sirit and Federal Signal creates a superior technology platform and service offering, while providing customers with more complete and fully integrated solutions,” said Norbert Dawalibi, president and CEO of Sirit. “We look forward to working closely with the Federal Signal team to ensure a smooth transition and complete the transaction as expeditiously as possible,” added Dawalibi.

Federal Signal intends to finance the transaction through cash on hand and existing bank lines of credit. Upon completion of the transaction, Sirit will operate as part of Federal Signal’s Safety and Security Systems Group.

For more information on companies in this article

Related Content

  • Positive incentives an alternative to road user charging?
    February 1, 2012
    The Netherlands has been looking at incentivising rush-hour avoidance. The intention is to better understand road users' motivations and find alternatives to congestion charging. Something significant needs to happen if we are to adequately address the traffic congestion and other issues caused by the ever-rising numbers of vehicles on our roads. Congestion or distance-based charging is seen as one way of managing demand and raising revenue for improvements to transport infrastructure. However, charging is
    Read More
  • National funding cuts cause fragmentation of US ITS market
    February 1, 2012
    Paul Everett, Research Director with IMS Research, looks at how ITS deployment varies across the US and what this means in terms of market potential for systems manufacturers and suppliers At the end of 2010, the US will have a total resident population of close to 310 million, rising to an estimated 439 million by 2050.
    Read More
  • Investors point to bright future for micromobility
    January 23, 2020
    Some big names are looking to invest in transportation companies – and this new confidence in the future of MaaS and micromobility indicates a step change, says Ito World’s Johan Herrlin
    Read More
  • Asecap Days 2023: Data drives the best decisions
    December 22, 2023
    Almost all the data being collected by highway operators is going to waste. But if firms collect and analyse these ‘vast lakes of data’ they can investigate threats, monitor management systems and drive up revenues, delegates were told at Asecap Days 2023. Geoff Hadwick reports
    Read More

Highlighted Content