- Traffic Technologies Ltd has signed an agreement to acquire Artcraft Pty Ltd’s ITS (Intelligent Transport Systems) business for AU$750,000.
- Under the agreement, the Company would purchase the business and assets, staff, client deals, plant and equipment, as well as a finance lease liability.
- Through the acquisition, Traffic Technologies would be able to improve its position in the ITS sector.
ASX-listed Traffic Technologies Ltd (ASX:TTI), the provider of wide-ranging products and services to the traffic industry, has signed an agreement to acquire the business and assets of Artcraft Pty Ltd’s ITS business for AU$750,000.
Following the release of the announcement, TTI’s shares moved up and were trading 5.999% higher at AU$0.053 (At AEST 3:25 PM). The shares have delivered a YTD growth of ~ 36%.
TTI’s peers include Saferoads Holdings Limited (ASX:SRH) and Transurban Group (ASX:TCL). SRH shares were trading in line with the previous close, while TCL shares were trading 1.329% lower on the ASX at A$14.110 (at AEST 3:25 PM).
The acquisition has been organised as an asset purchase. Through this agreement, the Company would acquire business and assets, staff, client deals, plant and equipment, as well as a finance lease liability.
The acquisition would help Traffic Technologies attract new clients. (Source: © Flynt | Megapixl.com)
About Intelligent Transport Systems Business
Intelligent Transport Systems (ITS) business is into the business of designing, developing, manufacturing, and supplying electronic road signage and software systems to clients around Australia. Headquartered in Brisbane, ITS has generated average revenue of AU$4.9 million in the last three years. It monitors traffic and also exhibits vital data to motorists in an appropriate and timely way. This helps these motorists to make informed decisions ahead of time. Thus, allowing better-informed motorists to create safer and smoother traffic flows on the road network.
Advantage Of Acquiring ITS Business
Through this acquisition, the Company would be able to improve its position in the ITS sector. Electronic info displays symbolise a value proposition for state road authorities as well as local councils and are being used for traffic management on crowded roads. The acquisition of ITS would let TTI expand its business in Queensland and increasing its Smart City mark via TTI’s TST (proprietary software).