Q-Free strengthens the ATMS area through acquisition
Q-Free has signed a Share Purchase Agreement (SPA) for the acquisition of the Serbian company ELCOM d.o.o. for EUR 1.3 million. The acquisition reflects the company’s efforts to strengthen its new business area within Advanced Transportation Management Systems (ATMS), and follows a USD 1 million investment for 10 percent ownership in the American company Intelight.
The Traffic Management company ELCOM was established in 1994, employs 18 people and the main offering includes traffic centrals and traffic controllers for traffic lights, LED streetlights and system solutions for different traffic control applications based on own and third-party products. The company is expected to generate revenues of approximately EUR 1 million and an operating margin of around 10 percent in 2013. ELCOM will be consolidated into the accounts of Q-Free as of the fourth quarter 2013.
- Our ATMS initiative is important to, over time, further develop the fundament for our business volumes. Large investments are expected within ATMS to improve traffic safety and flow, environmental sound transport and to improve cost efficiency through deployments of new technology. This may give us significant opportunities for increased product sales. Compared with the Road User Charging business, we also find the ATMS market considerably less exposed to political risk, says CEO Øyvind Isaksen in Q-Free.
In the longer-term, Q-Free expects that the markets for ATMS and Road User Charging will converge into a joint market for Intelligent Transport Systems (ITS) – both technologically and commercially. Q-Free intends to play an important role in this market, and considers ELCOM’s products and services as a natural expansion of its product offering. ELCOM on its side expects to see positive effects when the company gains access to Q-Free’s global market network.
- Becoming a part of Q-Free will mean a lot for our market access, as we currently work mainly in our local markets. All employees in ELCOM are very enthusiastic about the opportunity to take part in an expansion of our business together with the rest of the Q-Free family, says CEO Bosko Lekovic in ELCOM.
The American company Intelight in Tucson, Arizona will be an important strategic partner for ELCOM in the internationalisation process. In July 2013 Q-Free invested USD 1 million in new equity for a 10 percent stake in Intelight, with an option for further investments at a later stage. Intelight holds leading technology within traffic control equipment and traffic centrals.
- Traffic centrals and controllers are key products in the ATMS segment, and the acquisition of ELCOM and the investment in Intelight will enable us to quickly establish a portfolio in this market, says Isaksen.
The share transfer in ELCOM will happen upon expiry of the notification period for the employees which is expected to take place within two weeks from the signing of the SPA.
Trondheim 24. October 2013
For further information, please contact:
CEO Øyvind Isaksen, cell: +47 908 76 398
CFO Roar Østbø, cell: +47 932 45 175
Q-Free is a leading global supplier of products and solutions for Road User Charging and Advanced Transportation Management. The company has approximately 290 employees and is represented in 17 countries. Headquarter is based in Trondheim, Norway. Q-Free is listed on the Oslo Stock Exchange with the ticker QFR.
www.q-free.com
Twitter: @Q-FreeASA
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