Cubic Corporation’s $235 Million Acquisition of Trafficware


Sheppard Mullin represented Cubic Corporation (NYSE: CUB) on the deal

Cubic Corporation (NYSE: CUB) today announced that it has entered into an agreement to acquire Advanced Traffic Solutions Inc. (“Trafficware”), a leading provider of intelligent traffic solutions for the transportation industry, for approximately $235.7 million in cash, subject to customary adjustments. Based in Sugar Land, TX., Trafficware provides a fully integrated, innovative suite of software, Internet of Things (IoT) devices and hardware solutions that provide customers with enhanced mobility and improved safety. Trafficware will be integrated into the Cubic Transportation Systems (CTS) business unit. The acquisition is expected to close today, October 24, subject to customary closing conditions.

In fiscal year 2019, Trafficware is expected to contribute approximately $50 million in sales and $14 million to $15 million of Adjusted EBITDA. Cubic anticipates the transaction will be accretive to cash earnings per share in the first full year of operations, exclusive of transaction fees. Cubic will finance the transaction from borrowings under its revolver.

As a company driving innovation in the traffic industry, Trafficware builds traffic management infrastructure for the next-generation of Smart Cities. Trafficware currently has the fastest-growing central management system in the transportation industry as well as adaptive traffic control technology; and most recently, Trafficware designed applications for the latest in Connected Vehicle technology for traffic signal systems. The company’s flagship Synchro® Studio suite helps improve traffic operations of all sizes and Trafficware’s Advanced Traffic Management System (ATMS) is used by more than 200 transportation authorities as the cornerstone of their central traffic management system.

Sheppard Mullin represented Cubic Corporation with a team including Lucantonio Salvi (Picture), Rob Wernli, Taylor Holmes Arek Malinowski, David Gallacher, Heather Petrovich, Carlo Van den Bosch, Michael Chan, Jonathan Meyer, Dmitriy Chelnitsky, Polly Towill, Keith Gercken, Olivier Theard, special counsel Sean Kirby, Andrew Alberg Fatema Merchant, Sarah Blitz and John Crisp.

Involved fees earner: Andrew Alberg – Sheppard Mullin; Sarah Blitz – Sheppard Mullin; Michael Chan – Sheppard Mullin; Dmitriy Chelnitsky – Sheppard Mullin; John Crisp – Sheppard Mullin; David Gallacher – Sheppard Mullin; Keith R. Gercken – Sheppard Mullin; Taylor Holmes – Sheppard Mullin; Sean Kirby – Sheppard Mullin; Arek Malinowski – Sheppard Mullin; Fatema Merchant – Sheppard Mullin; Jonathan Meyer – Sheppard Mullin; Heather Petrovich – Sheppard Mullin; Lucantonio Salvi – Sheppard Mullin; Olivier Theard – Sheppard Mullin; Polly Towill – Sheppard Mullin; Carlo Van den Bosch – Sheppard Mullin; Robert Wernli Jr. – Sheppard Mullin;

Law Firms: Sheppard Mullin;

Clients: Cubic Corporation;

Author: Ambrogio Visconti