Cubic Corp. said on Oct. 24 that it acquired Advanced Traffic Solutions Inc. of Sugar Land, Texas for $235.7 million in cash.
The acquired company, also known as Trafficware, offers a fully integrated suite of software, hardware and Internet of Things devices for traffic control. Cubic plans to integrate the business into its Cubic Transportation Systems business unit.
Cubic (NYSE: CUB) said it is funding the acquisition using its revolving line of credit. Looking ahead to fiscal 2019, Cubic said it expects Trafficware to contribute approximately $50 million in sales and $14 million to $15 million of adjusted EBITDA (or earnings before interest, taxes, depreciation and amortization).
Cubic splits its business between defense contracting and technology for mass-transit agencies and transportation departments.