Verra Mobility announced it has entered into a binding agreement with Redflex Holdings Limited to acquire 100% of the issued share capital of Redflex at a price of A$0.92 per share, representing a total acquisition price of A$146.1 million.
The combination of Verra Mobility and Redflex will enable global delivery of leading road safety products and services, and will result in increased resources, scale, enhanced technology capabilities, and an expanded global reach. The combined group will also accelerate and heighten Verra Mobility’s ability to provide innovative solutions and world-class services for all of its customers and partners.
“We are delighted at the prospect of welcoming the Redflex team and their customers to the Verra Mobility family,” said David Roberts, Chief Executive Officer, Verra Mobility. “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, Redflex Group Chief Executive Officer, commented that, “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.”
The transaction is to be implemented via a scheme of arrangement under Australian law and its closing is subject to the satisfaction of customary conditions precedent in transactions of this type, including Redflex shareholder approval and necessary regulatory and court approvals. The transaction is currently expected to close in May 2021.
