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.