Its not quite that simple. 3M has purchased the Federal Signal Technologies Group (FSTech) from Federal Signal Corporation. Federal APD is the parking arm of FSTech. I have pasted the news release from 3M below. I hope the fact that 3M’s John Houle neglected to single out Federal APD in his quote below isn’t a harbinger of things to come for the parking division.
3M announced today that it has entered into an agreement to acquire the business of Federal Signal Technologies Group (FSTech) from Federal Signal Corp., for a purchase price of $110 million in cash, subject to post-closing adjustments. FSTech focuses on electronic toll collection and parking management hardware and software services.
The fast-growing $3 billion electronic tolling industry is projected to grow at a rate greater than 12 percent per year as government agencies increasingly rely on tolling to fund roadway infrastructure, construction and maintenance. FSTech’s solutions for electronic tolling, vehicle identification and classification, toll management software, license plate recognition, and parking lot fare collection systems, combined with 3M’s traffic management solutions, will advance the tolling and parking industry enabling seamless fare collection wherever motorists drive.
“Electronic tolling and parking are key adjacencies to 3M’s offering for motor vehicle systems and services,” said John Houle, vice president and general manager, 3M Traffic Safety Systems Division. “FSTech will complement 3M’s offerings for the Department of Transportation, the Department of Motor Vehicles, toll authorities, and law enforcement agencies, and expand on our core traffic products for motor vehicles and roadways, and license plate validation materials.”
For more than 70 years 3M has delivered traffic products, systems and services for transportation safety, traffic management, vehicle registration and commercial transportation markets. FSTech’s technologies come from its five business units: IDRIS – vehicle detection and classification solution; PIPS – fixed and mobile automatic license plate reading hardware and software; Federal APD – parking management and fare collection solutions; Sirit – active and passive RFID transponders and readers; and VESystems – toll account management and violation processing software and services.
“3M’s expertise and innovation in the traffic industry make it a natural choice to continue to build this important business for our customers and for drivers everywhere,” said Dan McGurran, director, 3M Motor Vehicle Systems and Services.
On a GAAP reported basis, 3M estimates the acquisition to be $0.02 dilutive to earnings in the first 12 months following completion of the transaction. Excluding purchase accounting adjustments and anticipated integration expenses, 3M estimates the acquisition to be neutral to earnings over the same period.
FSTech employs approximately 500 people and has primary facilities in Arizona, California, Illinois, Michigan, Missouri, North Carolina, Tennessee, Texas, Hong Kong, Dubai and the U.K. The transaction is expected to be completed in the second half of 2012, subject to customary approvals and closing conditions.