Q-Free has signed a deal to acquire Serbian traffic management company ELCOM, a move that will strengthen the former’s new business segment within Advanced Transportation Management Systems (ATMS).

Under the terms of the €1.3m share purchase agreement (SPA), ELCOM will be consolidated into the accounts of Q-Free as of the fourth quarter 2013.

Established in 1994, ELCOM primarily offers traffic centrals and traffic controllers for traffic lights, LED streetlights and system solutions for different traffic control applications based on both third-party products and its own.

Q-Free CEO Øyvind Isaksen said that the company’s ATMS initiative is important to further develop its business over time.

"Large investments are expected within ATMS to improve traffic safety and flow, environmental sound transport and to improve cost efficiency through the deployment of new technology.

"Compared with the Road User Charging business, we also find the ATMS market considerably less exposed to political risk," Isaksen noted.

"ELCOM will be consolidated into the accounts of Q-Free as of the fourth quarter 2013."

Q-Free’s latest acquisition follows $1m of investment for a 10% stake in the American company Intelight, with an option for further investment at a later stage.

Intelight, which holds leading technology within traffic control equipment and traffic centrals, will be a vital strategic partner for ELCOM in the internationalisation process, according to Q-Free.

"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," Isaksen added.

In the longer-term, Q-Free expects the markets for ATMS and Road User Charging to combine into a joint market for intelligent transport systems, both technologically and commercially.

The share transfer in ELCOM will be executed after the expiry of the notification period for the employees, which is expected to take place within two weeks from the signing of the SPA.