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

  • Contract wins for Sensys Traffic
    July 11, 2013
    Sensys Traffic and the Swedish Transport Administration have signed multi-year contracts estimated to be worth up to US$82.5 million, and at least US$16.5 million for the delivery of monitoring systems and roadside cabinets for traffic safety cameras. Sensys won procurement contracts for measurement systems and measurement cabinets earlier this year. The procurement process was appealed, but following a subsequent decision of the Administrative Court, Sensys and the Swedish Transport Administration have now
    Read More
  • Hub Parking Technology acquires Parking & Time Recording Services
    August 1, 2014
    Italy-based Hub Parking Technology, a business group of automated access systems supplier FAAC, has acquired Australian vehicle access control company Parking & Time Recording Services (PTRS). Based in the Sydney area, PTRS has already a long history story of mutual cooperation with the FAAC Group, being a local distributor of Zeag parking systems and installer of FAAC gate automation. According to Hub, the combination of the two companies will increase the value the company delivers to customers by
    Read More
  • Iteris reports strong 2014 growth
    September 4, 2014
    Iteris has reported financial results for its fiscal fourth quarter and full year ended31 March 2014, indicating total revenues in the fourth quarter of 2014 increased 11 per cent to US$17.6 million compared to US$15.9 million in the same quarter last year. This was primarily driven by a 25 per cent increase in roadway sensors. iPerform revenues were also up 14 per cent, while transportation systems revenues were down one per cent. Total revenues in 2014 increased 11 per cent to US$68.2 million compared to
    Read More
  • Developments in smarter multi-modal fare paynment
    February 2, 2012
    This section pulls together all the multi-modal topics in each issue. Subject matter will include smartcards; ticketing and payment systems; passenger information systems; fleet management for buses, trains and light rail; park and ride systems; on-line access to real-time information via Internet portals
    Read More

Highlighted Content