The transaction is valued at US$4.5 million initially with further payments over four years subject to meeting financial performance measures.
SBL and Americore will continue to operate as separate entities with Redflex as sole owner. Smart Bus President and CEO Tom O’Connor will be retained as president of Redflex’s school bus arm operations and the senior leadership and staffs of the two companies will remain in their current positions. Redflex plans to merge the Smart Bus system with its Redflex Student Guardian school bus arm photo enforcement system which was recently introduced.
“The acquisition of Smart Bus further solidifies our position as a leader in photo enforcement globally, and expands the opportunity to provide products and services into this emerging market” said Graham Davie, CEO, Redflex Holdings. “We are pleased that Tom has agreed to lead our North American school bus arm enforcement operations and that his leadership and staff will remain in place. They have strong knowledge of the industry and a track record of success.”
The Smart Bus system is currently being deployed by school districts in several states across the US, but opportunities exist in many other communities to expand the use of the school bus arm enforcement technology and introduce the use of other Redflex products, including intersection, speed and rail safety cameras. Ten states currently allow the use of school bus arm enforcement technology and at least ten others are considering legislation which would authorise its use.
