January 21, 2021
Industrials and Industrial Technology
GCA advises Redflex on its announced acquisition by Verra Mobility
GCA has advised Redflex Holdings Limited (ASX: RDF), a provider of intelligent traffic management products and services, on a binding scheme implementation agreement to be acquired by Verra Mobility Corporation (NASDAQ: VRRM).
Over the past 25 years, Redflex has established itself as a world leader in developing and implementing intelligent traffic management products and services which are sold and managed in the Asia Pacific, North America, the United Kingdom, Europe and Middle East regions. Redflex develops, manufactures and operates a wide range of platform-based solutions all utilising advanced sensor and image capture technologies, enabling active management of state and local motorways.
Verra Mobility serves the world’s largest commercial fleets and rental car companies to manage tolling transactions and violations for millions of vehicles. As a leading provider of connected systems, Verra Mobility processes millions of transactions each year through connectivity with more than 50 individual tolling authorities and more than 400 issuing authorities. Verra Mobility also fosters the development of safe cities, partnering with law enforcement agencies, transportation departments and school districts across North America operating thousands of red-light, speed, bus lane and school bus stop arm safety cameras.
Under the scheme implementation agreement, Verra Mobility will acquire 100% of the share capital of Redflex for AUD 0.92 (USD 0.71) per share in cash for a total acquisition price of AUD 146 million (USD 113 million). The offer price represents a 130% premium to Redflex’s closing stock price on January 21 2021.
The combination of Redflex and Verra Mobility will enable global delivery of leading road safety products and services and will result in increased resources, scale, enhanced technology capabilities and an expanded global reach.
The transaction is to be implemented via a scheme of arrangement under Australian law, and its closing is subject to the satisfaction of customary conditions precedent in transactions of this type, including Redflex shareholder approval and necessary regulatory and court approvals.