Cubic
GRIDSMART uses advanced image processing to deliver data for optimising the flow of traffic through roundabouts. Credit: Tim Gouw on Unsplash.

American transportation solutions provider Cubic has purchased Intelligent Traffic Systems (ITS) solutions provider GRIDSMART Technologies in a cash deal worth $87m.

GRIDSMART specialises in video detection at the intersection, using advanced image processing, computer vision modelling and machine learning.

It features a single camera solution to deliver data for optimising the flow of people and traffic through roundabouts.

Cubic believes the acquisition of GRIDSMART will contribute $35m in sales and $8m of adjusted EBITDA for 2019.

The company will refund the deal using its existing credit facilities.

Cubic chairman, president and CEO Bradley Feldmann said: “GRIDSMART’s industry-leading video tracking solution at the intersection is a key addition to our growing Intelligent Traffic Management portfolio to reduce congestion.

“GRIDSMART’s industry-leading video tracking solution at the intersection is a key addition to our growing Intelligent Traffic Management portfolio to reduce congestion.”

“It is complementary to our recent acquisition of Trafficware, both of which are cash EPS accretive in first full year of operations.”

GRIDSMART provides a single camera sensor for intersection actuation and performance management with horizon-to-horizon view with its fisheye lens.

The Bell Camera solution is also used for intersection actuation, data collection and situational awareness.

Cubic Transportation Systems president Matt Cole said: “Detection is the largest and fastest growing segment within the intelligent traffic management market and is critical to enabling smart intersections that can optimise the flow of people and goods through cities, which is core to the operations and analytics pillar of the NextCity vision.

“This strategic investment in GRIDSMART will not only enhance our growth profile through synergies with Trafficware but also strengthen Cubic’s Surface Transport Management solution offering.”