Verra Mobility, a leading provider of smart mobility technology solutions, announced the closing of the transaction to acquire 100% of the issued share capital of Redflex Holdings Limited for a purchase price of A$0.96 per share, representing a total acquisition price of A$152.5 million. Entry into the agreement with Redflex was previously announced in January 2021.
“We are very excited about this acquisition,” said David Roberts, Chief Executive Officer, Verra Mobility. “Bringing together these two companies will result in increased resources, scale, and enhanced technology capabilities. The combination will enable global delivery of leading road safety products and services, allowing us to compete internationally as a global leader in smart transportation.”
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Redflex is combining with Verra Mobility’s Government Solutions business segment, enhancing its product portfolio and technology capabilities, and increasing its scale and global reach. Mark J. Talbot, who served as Redflex’s CEO, will lead the Government Solutions business and join Verra Mobility’s executive leadership team.
“Both teams have been moving quickly but thoughtfully on integration planning. Overall we expect to realize approximately $8 million to $10 million in cost synergies in the coming 24 months. We look forward to putting our plan into action and leveraging the ‘best of both’ of the companies to create significant value for our customers and shareholders for many years to come,” added Mr. Roberts.
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During calendar year 2020, Redflex Holdings Limited reported revenue of $71.8 million and EBITDA of $13.3 million on an IFRS basis using a full-year average exchange rate of A$0.69:US$1.00.
As a result of the completion of the acquisition, Redflex has become a wholly-owned subsidiary of Verra Mobility, and shares of Redflex will no longer be listed for trading on the Australian Securities Exchange, which is expected to take effect as of the close of market on June 21, 2021.
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