Cubic completes acquisition of Serco transport solutions

1676 Serco’s transport solutions business will become a part of Cubic Transportation Systems following 378 Cubic Corporation’s acquisition of the business for an enterprise value of US$70 million. Serco’s primarily a UK-based transport technology and services business and had revenues in the last calendar year of approximately $67 million.
 
Serco’s transport solutions business specialises in the development and supply of complex traffic management systems for the monitoring and control of urban and intra-urban road networks, including 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 1466 Transport for London and Transport for New South Wales, which are already Cubic customers, as well as other major organisations such as the 503 Highways Agency and 505 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 288 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.”