- Verra Mobility enters a new acquisition deal with Australia-based Redflex Holdings Ltd.
- The company has sealed the deal to buy 100% of the issued share capital of Redflex.
- Arizona-based Verra Mobility has offered to pay Redflex shareholders about AUD 0.92 (USD 0.71) per share.
- The transaction is projected to close in May 2021, depending on the approval by Redflex shareholders.
Smart mobility technology solutions
Verra Mobility is a prominent contributor of smart mobility technology solutions. The company declared its new acquisition of the Australia-based Redflex Holdings Ltd. Redflex is an innovative Intelligent Transport Solutions (ITS) technology company that offers smart and advanced solutions.
Finally, the deal is sealed
The company has sealed the deal to buy 100% of the issued share capital of Redflex Holdings Ltd., representing a total binding agreement price of AUD 146.1 million (USD 113.10 million). The Verra Mobility shares are anticipated to rise by about 3.9%, while Redflex listed on the Australian Securities Exchange spiked approximately 115% on January 22, 2021.
Being part of the acquisition proposal, Arizona-based Verra Mobility has offered to pay Redflex shareholders about AUD 0.92 (USD 0.71) per share, reflecting an approximately 130% premium to its closing price.
Australia-based Redflex develops traffic management products such as speed cameras and red light. The deal could be an opportunity to open the business across international markets. This acquisition is expected to boost Verra Mobility’s ability to offer innovative solutions and world-class services for all its consumers and partners. The company’s products are marketed in the Middle East, Asia Pacific, Europe, and the UK.
David Roberts, Chief Executive Officer at Verra Mobility, commented: “We are delighted at the prospect of welcoming the Redflex team and their customers to the Verra Mobility family.” He further added, “We are incredibly excited for this step forward in building the Verra Mobility of the future, expanding our portfolio of safe city solutions, and solidifying our position as a global leader in smart transportation.”
Mark J. Talbot, Group Chief Executive Officer of Redflex Holdings Ltd., commented: “The combination is expected to provide significant benefits for all stakeholders and will further strengthen the service and innovation that Redflex delivers to its worldwide customer base. The agreement is a strong endorsement of the quality of the Redflex business, the achievements of Redflex’s strategic initiatives over the last few years, and the strategic value we can add to a leading industry player such as Verra Mobility.”
More about the deal
The transaction is to be implemented through a scheme of arrangement under Australian law, and its closing depends on the satisfaction of customary conditions. The transaction is projected to close in May 2021, depending on Redflex shareholders’ approval and regulatory permission.
Louie DiPalma, a Research Analyst at William Blair, restated a Buy rating on the stock as he believes that the agreement between two companies will help boost shares by approximately 15%.