Q-Free acquires Open Roads Consulting

108 Q-Free has signed a Share Purchase Agreement (SPA) for the acquisition of 5660 Open Roads Consulting for a cash consideration of approximately US$6.2 million. Further consideration is dependent on future financial performance. The transaction is expected to be closed within the end of the third quarter 2014.

The acquisition represents a milestone for Q-Free and is a strategically good match with other advanced traffic management systems (ATMS) and road user charging (RUC) activities within the group.  It will substantially strengthen the company’s presence in the US and is a strategically good match with other advanced traffic management systems (ATMS) and road user charging (RUC) activities within the group.  Open Roads Consulting’s software solutions will be a valuable addition to Q-Free’s offering of ATMS solutions both in the US and internationally.

Open Roads Consulting is a leading provider of off-the-shelf solutions, technology integration and full lifecycle support to help clients operate, manage, and protect critical assets. The company has two highly complementary business areas; the Intelligent Transportation Systems Division (ITSD) and the Integrated Security Systems Division (ISSD).

“The world’s biggest market for Road User Charging and Traffic Management is in the US. The acquisition of Open Roads Consulting will provide an organisational platform for further penetration into the US market in all of our three business areas ATMS, RUC/tolling and managed services. This addition to our portfolio will increase revenue synergies for the existing Q-Free activities in the US, and is an important step for Q-Free to become a fully-fledged ITS supplier,” says Q-Free CEO Thomas Falck.

“Open Roads Consulting is a company with a strong market position in the US. Teaming up with Q-Free will strengthen our current position, in addition to provide a global reach for our products. We are very excited about the future opportunities and we are looking forward to be working with Q-Free,” commented Open Roads founder and president Barbara Skiffington.

Q-Free’s ATMS business has been strengthened substantially over the last two years, with the acquisition of US-based parking guidance company 7045 TCS International in 2012 and Serbian traffic management company 7723 ELCOM and a strategic ten per cent investment in 7316 Intelight in the US in 2013. The acquisition of Open Roads Consulting is the third acquisition in 2014, following the inclusion of 131 TDC Systems in the UK and 7724 Traffic Design in Slovenia into the Q-Free Group earlier this year.

In the longer-term, Q-Free expects that the markets for ATMS and Road User Charging will converge into a joint market for Intelligent Transport Systems (ITS) - both technologically and commercially. Q-Free intends to play an important role in this market, and will continue to build its position through acquisitions as well as further development of its current businesses within this area.