Redflex (ASX:RDF) one step away from takeover by Verra Mobility

Company News

by Michael Luu

Traffic surveillance specialist Redflex (ASX:RDF) has received the second last tick of approval from the Federal Court of Australia for an acquisition by US-listed Smart transportation firm Verra Mobility Corporation.

The takeover scheme of arrangement for the $144 million vehicle tracking solutions provider is now pending the last approval from the General Authority for Competition in the Kingdom of Saudi Arabia (GAC).

The deal received the go-ahead from shareholders in a scheme meeting in early May, after the bidder bumped up its offer from 92 cents to 96 cents for each Redflex share.

Redflex is a manufacturer of speed cameras, sensor devices, and image analysis and traffic monitoring systems. The company provides traffic management solutions to private and government customers in the Middle East, North America, Europe and Asia Pacific regions. The US market currently constitutes the majority of its sales revenue.

The transaction is expected to give its Arizona-based bidder a leading edge in providing smart mobility and enforcement surveillance solutions and expand its customer network.

The Saudi Arabian business regulator is expected to give its verdict on the acquisition by August 13.

Shares in Redflex Holdings (ASX:RDF) are steady at $0.95.