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

  • Developing an integrated WIM/ANPR enforcement system
    July 31, 2012
    The weigh in motion market remains especially buoyant and technological development continues to reflect this. Although there are major differences in operating philosophies, particularly between developed and developing countries, both the numbers of countries using Weigh In Motion (WIM) technology and the numbers of systems that they deploy are on the increase.
    Read More
  • Point Grey hosts first AIA Vision standards meeting
    March 15, 2012
    Point Grey, a leader in advanced digital imaging products, will be hosting the AIA Winter 2012 Vision standards meeting in Vancouver, Canada from 13 – 17 February.
    Read More
  • Toronto to get electronic payment cards
    November 30, 2012
    Toronto public transport passengers will soon be able to use a single-fare Presto card to get around on the Toronto Transit Commission (TTC) or seven other municipal transit systems in Ontario. Transit and government officials say the Presto fare system will be in place throughout the entire TTC system, subway stations, buses and new streetcars, by 2016. Bob Chiarelli, Ontario’s minister of transportation and infrastructure, said Toronto transit passengers have been requesting the electronic fare system fo
    Read More
  • Orange County awards $1.4 million traffic signal synchronisation project
    July 3, 2014
    Iteris has expanded its relationship with the Orange County Transportation Authority (OCTA) with the award of a US$1.4 million contract to provide traffic signal improvements. The project is part of the renewed Measure M regional traffic signal synchronisation program, which was approved by voters in 2006 for a 30-year extension. Measure M is the half cent sales tax for transportation improvements that was initially approved by Orange County voters in 1990, and was renewed by voters for a 30-year extensi
    Read More

Highlighted Content