San Diego, Calif.-based Cubic Corporation announced its acquisition of GRIDSMART Technologies, Inc. on Wednesday for $87M in cash, subject to customary adjustments.
In 2019, GRIDSMART anticipates $25M in sales and $8M of adjusted EBITDA. Cubic expects to finance the acquisition through its existing credit facilities and predicts the transaction will be accretive to cash earnings per share within the first full year of operations.
“GRIDSMART’S industry-leading video tracking solution at the intersection is a key addition to grow our intelligent traffic management portfolio to reduce congestion, said Bradley Feldmann, Cubic’s chairman, president and chief executive officer. “It’s complementary to our recent acquisition of Trafficware, both of which are cash EPS accretive in the first full year of operations.”
Knoxville, Tenn.-based GRIDSMART specializes in video detection by utilizing advanced image processing, computer vision modeling and machine learning along with a single camera solution for optimizing the flow of people and traffic through intersections. The company has counted and classified over 43B vehicles through 54M hours of real-world footage. Their video is processed across 7,000 intersections in 1,200 different cities around the world.
“Detection is the largest and fastest growing segment within the intelligent traffic management market and is critical for enabling smart intersections that can optimize the flow of people and goods through cities, which is the core for the operations and analytics pillar of the NextCity vision,” says Matt Close, president of Cubic Transportation Systems. “This strategic investment in GRIDSMART will not only enhance our growth profile through synergies with Trafficware but also strengthen Cubic’s surface transport management solution offering,” Cole added.