Kapsch TrafficCom AG has agreed on 5 November 2010 to acquire through subsidiaries the businesses of MARK IV IVHS part of MARK IV LLC (U.S.) in the United States in Canada and in Mexico for a purchase price of USD 70 million (approximately EUR 50 million) subject to certain closing conditions and subject to certain potential price adjustments based on working capital included with the business. The transaction is structured as a stock purchase of the holding companies which own the Mark IV IVHS business and closing is targeted for 30 November 2010.
MARK IV IVHS is a designer and manufacturer of dedicated short-range communication (DSRC) devices that are widely used by highway toll turnpike tunnel and bridge authorities to enable intelligent transportation systems (ITS) such as electronic toll collection (ETC) and automated weigh station bypass. With more than 21.8 million transponders on-the-road and more than 3700 lanes equipped MARK IV IVHS is the largest supplier of ETC equipment in North America. MARK IV IVHS has enabled many landmark ITS deployments including: the world’s first non-stop all-electronic toll road (Highway 407 ETR Canada); interoperability between truck electronic preclearance systems and toll collection (PrePass); and the E-ZPass® system of the 24 toll authorities in 14 states who comprise the E-ZPass® Group in the Northeastern United States. E-ZPass® is a regional ETC system that can be used throughout the Northeast and Midwest regions of the United States. MARK IV IVHS also recently announced a contract award in Mexico. With 142 employees MARK IV IVHS generated in its last fiscal year 2009/2010 ended February 282010 net sales of approximately USD 50 million (approximately EUR 36 million) at a clear positive free cash flow and at an EBITDA margin accretive to the EBITDA margin of Kapsch TrafficCom Group generated in its last fiscal year 2009/2010 ended 31 March 2010.
Kapsch TrafficCom is an international supplier of superior intelligent transportation systems (ITS). Its principle business is the development and supply of electronic toll collection (ETC) systems in particular for the multi-lane free-flow (MLFF) of the traffic and the technical and commercial operation of such systems. Kapsch TrafficCom also supplies traffic management systems with a focus on road safety and traffic control and electronic access systems and parking management. With approximately 240 references in 39 countries on all five continents and with more than 19 million transponders (on-board units – OBUs) delivered and about 13000 lanes equipped Kapsch TrafficCom has positioned itself among the leading suppliers of ETC systems worldwide. Kapsch TrafficCom is headquartered in Vienna Austria and has subsidiaries and representative offices in 25 countries. With currently almost 1500 employees Kapsch TrafficCom Group generated revenues of EUR 216 million (approximately USD 300 million) in its last fiscal year 2009/2010 ended 31 March 2010.
For further information please contact:
Kapsch TrafficCom AG
Am Europlatz 2 1120 Vienna Austria
Phone: +43 50 811 1120
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Original Publication Date: Thu 25 Nov 2010