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

  • Another payment option for TransLink users
    January 13, 2023
    Riders can now use Canada's Interac and no longer need a pre-paid Compass card
    Read More
  • US ITS systems approach critical decision time
    February 6, 2012
    Connie Sorrell, chair of the ITS America Annual Meeting and Exposition, explains why ITS in America is approaching a critical crossroads
    Read More
  • US ITS systems approach critical decision time
    February 3, 2012
    Connie Sorrell, chair of the ITS America Annual Meeting and Exposition, explains why ITS in America is approaching a critical crossroads. Connie Sorrell, as Chief of Systems Operations for the Virginia Department of Transportation, doesn't normally speak in hyperbole, but she can't help but be enthusiastic about this year's ITS America's annual meeting in the nation's capitol, 1-3 June, 2009. Certainly, as Chair of the 2009 ITS America Annual Meeting and Exposition, like everyone who has performed this impo
    Read More
  • Smart parking key to sustainable urban mobility
    April 26, 2013
    Smart parking looks like a market poised to take off in the US. It could bring many benefits, not just for parking facility operators and their customers but also for society as a whole. Steven Bayless, senior director, telecommunications and telematics at ITS America, looks at some of the opportunities and challenges involved. Parking is an estimated $24-25 billion industry in the US and although highly fragmented, it is experiencing a growing trend towards consolidation and outsourcing of parking operatio
    Read More

Highlighted Content