Press release from Business Wire
Cubic Completes the Acquisition of the Transport Solutions Business of Serco
Wednesday, November 27, 2013
Cubic Completes the Acquisition of the Transport Solutions Business of Serco06:01 EST Wednesday, November 27, 2013
SAN DIEGO (Business Wire) -- Cubic Corporation (NYSE: CUB) announced today that it has completed the acquisition of Serco's Transport Solutions business for an enterprise value of £43.5 million ($70 million) subject to adjustment as set forth in the purchase agreement. Cubic announced last June that it had entered into exclusive due diligence for the acquisition. Serco's Transport Solutions business will become a part of Cubic Transportation Systems, a leading integrator of payment and information technology and services for intelligent travel solutions. Serco's Transport Solutions business is primarily a UK-based transport technology and services business and had revenues in the last calendar year of approximately £42 million ($67 million).
For more than 20 years, Serco's Transport Solutions business has specialized in the development and supply of complex traffic management systems for the monitoring and control of urban and intra-urban road networks, encompassing integrated traffic and incident management, decision support, bus tracking and passenger information through integrated user interfaces.
The business also provides safety camera and associated back office solutions as well as a complete capability for the installation and maintenance of intelligent transport systems and equipment, such as maintaining over a third of London's traffic lights.
“We're delighted that Serco's Transport Solutions team today becomes part of the Cubic family,” said Steve Shewmaker, president of Cubic Transportation Systems and executive vice president of Cubic Corporation.
“The business has excellent specialist knowledge and capability in the enforcement, road and traffic markets, which is integral to our own NextCity vision of integrated solutions that help transport operators manage their operations and services and give travellers informed choices when deciding how and when to make their journeys.
“Additionally, Transport Solutions includes amongst its customers Transport for London and Transport for New South Wales, which are already Cubic customers, as well as other major organizations such as the Highways Agency and Transport Scotland. Taken all together, that business mix means the acquisition and subsequent integration of the business is a move that is both logical and exciting for Cubic.”
David Stretch, Serco's partnership director for Transport, said, “As part of Serco's proactive portfolio management and following a strategic review of our UK transport operations, Serco has decided to divest its UK-focused Transport Solutions and London Streets Maintenance business. Transport continues to be a key market for Serco in which we are bidding for a number of major new transport contracts and where we will continue to deliver high-quality services, drive innovation and pursue growth opportunities for our customers. I would like to thank colleagues for their hard work and commitment in building Transport Solutions into a successful business.”
Serco Transport Solutions employs 253 people across the UK and three in Australia with offices in Stockton on Tees, Beckton (East London), Belfast, Birmingham and Cumbernauld, near Glasgow, as well as in Sydney, Australia.
About Cubic Corporation
Cubic® Transportation Systems, Inc., is part of Cubic Corporation. Cubic Corporation is the parent company of three major business segments: Defense Systems, Mission Support Services and Transportation Systems. Cubic Defense Systems is a leading provider of realistic combat training systems and secure communications systems. Mission Support Services is a leading provider of training, operations, maintenance, technical and other support services for U.S. and allied nations.
Cubic® Transportation Systems, Inc., is a leading integrator of payment and information technology and services for intelligent travel solutions. Cubic delivers integrated systems for transportation and traffic management, delivering tools for travelers to choose the smartest and easiest way to travel and pay for their journeys, and enabling transportation authorities and agencies to manage demand across the entire transportation network – all in real-time. Cubic specializes in design, development, manufacture, supply, installation, integration, services and information. Services provided by Cubic include on-site management, central systems, operations support, patron support, business support and field services.
Every year, nearly 7 billion rides are taken worldwide using Cubic payment and information systems. Cubic has delivered over 400 projects in 40 major markets on five continents. Active projects include London; Brisbane (Southeast Queensland) region, Australia; New York/New Jersey region; Washington, D.C./Baltimore/Virginia region; Los Angeles region; San Diego region; San Francisco region; Minneapolis/St. Paul; Chicago; Atlanta region; Miami (South Florida) region; Vancouver and Edmonton, Canada; Sydney (New South Wales), Australia; Germany; and Scandinavia.
For more information about Cubic, see the company's website at www.cubic.com.
Serco is an international service company, which combines commercial know-how with a deep public service ethos.
Around the world, we improve essential services by managing people, processes, technology and assets more effectively. We advise policy makers, design innovative solutions, integrate systems and - most of all - deliver to the public.
Serco supports governments, agencies and companies who seek a trusted partner with a solid track record of providing assured service excellence. Our people offer operational, management and consulting expertise in the aviation, BPO, defence, education, environmental services, facilities management, health, home affairs, information and communications technology, knowledge services, local government, science and nuclear, transport, welfare to work and the commercial sectors.
More information can be found at www.serco.com .
Serco's transport business
Serco delivers innovative transport solutions, whether by air, road, water or rail, to public transport authorities, government departments and commercial enterprises around the world.
Our focus on operational efficiencies and improving sustainability support our customers in meeting their strategic aims and objectives. Serco's experience in providing a wide range of multi-modal transport solutions in Asia, Europe, the Middle-East and North America enables us to tailor our services to meet the needs of a diverse travelling public. Our aim is to ensure that by delivering high-quality services, we can make a difference to people's journeys and lives.
Serco has a successful track record and compelling offer in both the UK and global light and heavy rail markets. We operate the UK's largest passenger rail franchise, Northern Rail as well as Merseyrail with our joint venture partner, Abellio. Since 1997, Serco has operated and maintained London's award-winning Docklands Light Railway (DLR). In Australia, we own Great Southern Rail which operates the iconic tourist trains - The Indian Pacific, the Ghan and the Overlander - and in the Middle East we have been operating the driverless Dubai Metro system since 2008.
Serco operates the iconic Barclays Cycle Hire Scheme in London on behalf of Transport for London (TfL). Launched in 2010, Serco designed, built and implemented this innovative scheme, in conjunction with TfL. Today, the scheme has seen over 25 million hires and has been expanded across the capital.
Also, in the UK, Serco operates NorthLink Ferries to the Shetland Islands and Orkney Islands, building on our experience delivering a range of marine support services for the Royal Navy. In the USA, Serco provides a bus transportation service to and from Washington Dulles International Airport for the US National Conservation Training Centre. We also provide on demand and scheduled bus services for the UK's Royal Air Force.
Serco is the only significant non-government provider of air traffic services in the world. We operate on a global basis and handle about six million aircraft movements each year at airports in Europe, the Middle East and North America on behalf of the UK's Ministry of Defence, the US Federal Aviation Administration and the United Arab Emirates' Area Control Centre in Abu Dhabi.
Serco also recently secured a major US contract to integrate and operate the state of Virginia's five transport operation centres.
Rosemary Alton/Harriet Jamieson
+44 (0) 20 8289 6216
Timothy A. Hill
Director of Corporate Communications
+1 (858) 505-2430
Cell: +1 (858) 232-2927