Kapsch TrafficCom acquires Mobility Solutions for US$15m

Kapsch TrafficCom acquires Mobility Solutions for US$15m

The California, US-based Mobility Solutions business unit develops, owns, markets, and licenses vehicle infrastructure integration technologies, including multiband configurable networking units (MCNU), and related technology and intellectual property for the transportation and automotive industries, systems integrators and federal, state and local government agencies.

The Mobility Solutions business unit engages mainly in business with the Vehicle Infrastructure Integration Consortium (VIIC), a non-profit organisation comprising various automotive OEMs, which was formed to develop and submit solution proposals to the US Dept of Transportation related to the new communication standard 5.9GHz WAVE (Wireless Access in the Vehicular Environment) for future tolling systems, car-to-car communications and improved traffic safety, road traffic telematics solutions and infotainment.

The Mobility Solutions business unit provides solutions for the Vehicle Infrastructure Integration proof-of-concept projects and test beds located in Michigan, California and NewYork.

The US$15 million purchase price for Mobility Solutions' assets is to be paid in cash on the closing of the transaction, the assumption of certain liabilities of the Mobility Solutions business unit, post-closing earn-out payments to TechnoCom of up to US$4 million (depending on the achievement of certain sales and operational milestones) and post-closing payments to TechnoCom based on the realisation of certain tax benefits resulting from the transaction.

The purchase price is subject to adjustment based on the final determination of closing date working capital.

The closing of the transaction is subject to the satisfaction or waiver of certain closing conditions, which Kapsch TrafficCom expects to be satisfied or waived in the course of June2008.

Kapsch TrafficCom's principle business is the development, supply, and technical and commercial operation of electronic toll collection systems, in particular for multi-lane free-flow (MLFF), as well as traffic management systems with a focus on road safety and traffic control, and electronic access systems and parking management.

The company has more than 140 installed tolling systems in thirty countries in Europe, Australia, Latin America, Asia-Pacific and South Africa, and almost twelve million On-Board Units.

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