SMARTRAC announced that the company recently signed an agreement to acquireNeology Inc., a provider of integrated solutions for the tolling, electronic vehicle registration (EVR) and public safety markets.
With the acquisition of Neology, SMARTRAC expects to expand its reach in the electronic vehicle registration and electronic toll collection market in the Americas. Neology and the totality of its 150 employees will continue its business activities. SMARTRAC added further to say that Neology’s product road map, intellectual property strategy and research & development organization will remain intact.
Under the terms of the agreement, SMARTRAC will acquire Neology for $30.0 million, on a cash and debt free basis. All parties have also agreed on an earn-out component of up to $9.0 million based on results of operations for the years 2011 and 2012.
Tenedora, the current majority shareholder in Neology, will retain a 15% stake and has agreed to re-invest any earn-out payments it may receive into the combined company. The acquisition is subject to customary closing conditions and is expected to close by the end of the year.