SecurityWorldMarket

06/05/2019

Tagmaster acquires Sensys Networks in the US

Berkeley, Ca and Stockholm, Sweden

Tagmaster AB, a leading supplier of advanced sensor systems for Smart Cities within Traffic and Rail, has signed an agreement to acquire Sensys Networks Inc. The purchase price is USD 16 million on a debt free, cash free basis, with an adjustment of net working capital as of the closing date against a normalised net working capital.

Sensys Networks, established 2003, is a leading provider of advanced data solutions for Intelligent Transportation Systems (ITS). Sensys Networks offers a comprehensive wireless platform, addressing today’s most challenging traffic and parking data needs. This end-to-end solution, comprised of sensors, edge gateways and highly sophisticated data management software (SNAPS), has been deployed in hundreds of cities globally, addressing the growing need for data driven traffic and parking solutions.

Sensys Networks is headquartered in Berkeley, California, and is led by industry veterans who bring years of experience in wireless communications, carrier grade infrastructure, enterprise software and transportation management for the public sector.

Sales for 2018 was approx. USD 15 million with an EBITDA of approx. – USD 1.7 million. After cost reductions, implemented during January 2019, the EBITDA for Sensys Networks 2019 is expected to be positive.

The past year confirms the validity of the Tagmaster’s chosen strategy of focusing on growth within the Traffic Solutions business segment. According to the company, while rail projects demonstrate high profitability, the major growth is in traffic solutions. Cities and other densely-populated areas worldwide face challenges of rapid growth, rising populations, climate change, declining air quality and forced urban development, which places new demands on transportation systems. Meeting these challenges requires Smart City solutions that streamline traffic and transportation systems, making day-to-day life simpler, safer and more efficient.

Sensys Networks’ products are deployed as part of several ITS applications including Traffic Signal Control, Traveler Information Systems, Tolling and Road Pricing, Safety and Enforcement. The ITS market is estimated to be $66B globally by 2024 as quoted by Tagmaster, with growth driven largely by the increasing global demand for Smart City solutions.

”Tagmaster is very excited about this important step in our growth strategy, as Sensys Networks makes us stronger in the ITS and Smart City markets. With the combined expertise of Sensys Networks and Tagmaster, we have excellent revenue growth opportunities in both US and European markets” says Jonas Svensson, CEO, Tagmaster.

Commenting on the acquisition, Amine Haoui, Sensys Networks CEO, said “We are very pleased to be joining the Tagmaster group. We recognise and welcome the strength that the union will bring to both brands and the synergies that are immediately apparent with the other Tagmaster companies.”

The acquisition provides both companies with an enhanced capacity for creating future products and solutions in the US and Europe, as well as a platform to deliver next-generation infrastructure to smartphone applications for connected travelers and autonomous vehicles..


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