Federal Signal's Acq of DiamondI keep hearing that Sirit isn't a fit for FSS. This might explain what we've been missing.
FEDERAL SIGNAL ACQUIRES DIAMOND CONSULTING SERVICES
Accretive Acquisition Adds Detection and Classification Technology to Federal Signal’s
Intelligent Transportation Systems Platform
OAK BROOK, Ill., December 10, 2009 – Federal Signal Corporation (NYSE: FSS), a leader in
environmental, safety and transportation solutions, today announced it has acquired Diamond
Consulting Services Ltd. (DCS), which specializes in vehicle classification systems for tolling and
other Intelligent Transportation Systems (ITS), for $14.6 million and deferred payments in future
years of up to $3.2 million. The transaction will be immediately accretive to Federal Signal
shareholders. The combination of DCS' technology with Federal Signal’s existing PIPS automated
license plate recognition technology broadens Federal Signal’s product line of best-in-class
technologies in ITS and increases the Company’s addressable market.
DCS' market leading automatic vehicle classification technology uses advanced proprietary
software to detect vehicles in a variety of safety, tolling and data collection applications and is
recognized worldwide by the Idris® brand. Idris technology classifies vehicles to the highest
available accuracy and is the de-facto standard in the U.S. for axle-based Electronic Toll
Collection, the process of collecting tolls without the use of toll booths or otherwise requiring
vehicles to stop. Together with PIPS, it is also at the heart of the latest generation of tolling – All
Electronic Toll Collection (AETC).
“This acquisition is an important step in our strategy of driving growth through our Public Safety
Systems platform,” said William Osborne, Federal Signal's President and Chief Executive Officer.
“DCS’ differentiated expertise in road traffic software applications and axle recognition technology
complements Federal Signal’s enforcement camera product. Our PIPS clients who also utilize
DCS’ software recognize the compelling value of the combined offering, further differentiating our
solutions from the competition. I have tremendous respect for Diamond Consulting's people,
technology and business, and I welcome the talented DCS team to Federal Signal.”
“DCS has built a strong position in the traffic industry over the last 15 years, and has become an
enabler in the evolution of tolling,” said Bob Lees, founder and Managing Director of Diamond
Consulting Services. “This is a proud day for DCS and a testament to the hard work and dedication
of our employees. We look forward to working with Federal Signal to deliver yet more innovative
products to our existing and new customers whilst maintaining the high level of service they have
come to expect from DCS.”
Diamond Consulting will operate as part of the Public Safety Systems business unit of Federal
Signal’s Safety & Security Systems group.