newsSeems like a good move as they seek to give a full package to the toll industry and making good moves . I will continue to watch and not fall in love.
Acquisition Expands Federal Signal's Portfolio of Best In Class Intelligent Transportation Systems Offerings
OAK BROOK, Ill., March 3/PRNewswire-FirstCall/ -- Federal Signal Corporation (NYSE: FSS), aleader in environmental, safety and transportation solutions, todayannounced it has acquired VESystems, LLC, a leader in back-office andcustomer management systems and services for the electronic tollcollection industry, and its affiliates, for $33 million, including approximately $8.4 million in stock. The cash portion of the consideration will be financed through existing liquidity.
VESystems,established in 2000, designs, develops and deploys advanced,cost-effective and easy-to-use software applications and customermanagement systems and services for the electronic toll collectionindustry. VESystems continually strives for technological innovationand operational excellence to help clients achieve economies andmaximize returns with products and services featuring unparalleledspeed, intelligent search capabilities, on-line internet and telephonesystem integration, dynamic reporting functions, ease of use and opensystem architecture on modern platforms. VESystems' back office HOTLane Congestion Pricing module for the Minnesota Department ofTransportation I-394 project was an industry first. In Texas,VESystems implemented the industry's first operational video tollingsolution for the Texas Department of Transportation.
VESystems management team, led by Founder and Chief Executive Officer, Manfred Rietsch,has more than 50 years of combined experience in electronic tollcollection program management, systems development/integration,database management, customer service, violation processing and tollevasion collections.
VESystems represents a key component inFederal Signal's unique Intelligent Transport Systems ("ITS") platform.The combination of VESystems' complete system operations with Sirit'sRadio Frequency Identification ("RFID") applications linked withFederal Signal's detection and classification technology (acquired inthe December 2009 purchase of DiamondConsulting Services) and existing PIPS automated license platerecognition ("ALPR") technology, immediately transforms Federal Signalinto a leader in the ITS market. As previously announced, FederalSignal expects to complete the acquisition of Sirit on or about March 5, 2010, subject to the satisfaction of certain closing conditions.
"Weare excited about the acquisition of VESystems, which expands ouraddressable market and advances our stated strategy of driving growththrough our Public Safety Systems platform," said William Osborne,Federal Signal's President and Chief Executive Officer. "VESystems'expertise and leadership in electronic toll collection software andcomplete system operations is highly respected in the industry andalready works well alongside the PIPS, Diamond and Sirit technology andservice offerings. We are confident that with this portfolio ofbest-in-breed technologies and services, Federal Signal will bewell-positioned to offer customers a comprehensive ITS solution,capitalize on the robust global market trends and deliver enhancedvalue to our stockholders."
"On behalf of our Board of Directorsand management team, I am delighted to welcome VESystems and itsexperienced talented team, led by Manfred Rietsch, to Federal Signal. The strength and depth of VESystems' team will be a key asset for our company," added Mr. Osborne.
"This is a proud day for VESystems," said Manfred Rietsch,Founder and Chief Executive Officer of VESystems. "We are confidentthat Federal Signal is the right fit for VESystems and we look forwardto rapidly integrating our operations and capitalizing on the power ofthis combination, while maintaining the high level of service ourcustomers have come to expect from VESystems."
About Federal Signal
FederalSignal Corporation (NYSE: FSS) enhances the safety, security andwell-being of communities and workplaces around the world. Founded in1901, Federal Signal is a leading global designer and manufacturer ofproducts and total solutions that serve municipal, governmental,industrial and institutional customers. Headquartered in Oak Brook, Ill.,with manufacturing facilities worldwide, Federal Signal operates threegroups: Safety and Security Systems, Environmental Solutions and FireRescue. For more information on Federal Signal, visit: https://www.federalsignal.com.
About VESystems
VESystems,established in 2000, designs, develops and deploys advanced,cost-effective and easy-to-use software applications and customermanagement systems and services for the electronic toll collectionindustry. VESystems continually strives for technological innovationand operational excellence to help clients achieve economies andmaximize returns with products and services featuring unparalleledspeed, intelligent search capabilities, on-line internet and telephonesystem integration, dynamic reporting functions, ease of use and opensystem architecture on modern platforms. VESystems' back office HOTLane Congestion Pricing module for the Minnesota Department ofTransportation I-394 project was an industry first. In Texas,VESystems implemented the industry's first operational video tollingsolution for the Texas Department of Transportation. For moreinformation on VESystems, visit: https://www.vesllc.com.
Forward-Looking Language
Thisrelease contains various forward-looking statements as of the datehereof and we undertake no obligation to update these forward-lookingstatements regardless of new developments or otherwise. Statements inthis release that are not historical are forward-looking statements.Such statements are subject to various risks and uncertainties thatcould cause actual results to vary materially from those stated. Suchrisks and uncertainties include but are not limited to: economicconditions in various regions, product and price competition, supplierand raw material prices, foreign currency exchange rate changes,interest rate changes, increased legal expenses and litigation results,legal and regulatory developments and other risks and uncertaintiesdescribed in filings with the Securities and Exchange Commission.
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Contacts:
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For Federal Signal:
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William Barker
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Senior Vice President and Chief Financial Officer
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1-630-954-2000
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wbarker@federalsignal.com
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For VESystems:
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Manfred Rietsch
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Chief Executive Officer
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1-949-450-0850
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