U.S. public transport company Cubic purchases GRIDSMART for $87 mln

California-based public transport company Cubic Corporation has purchased traffic management systems developer GRIDSMART Technologies, Inc. for about $87 million in cash, subject to customary adjustments.

Cubic said that the strategic commitment in GRIDSMART will advance its development profile through synergies with Trafficware and also bolster Cubic’s Surface Transport Management solution offering.

GRIDSMART is expected to contribute about $35 million in sales and $8 million of adjusted earnings before interest, taxes, depreciation, and amortization for full calendar year 2019.

In addition, Cubic, which will finance the deal from its existing credit facilities, expects the transaction to be accretive to cash earnings per share in the first full year of operations, exclusive of transaction fees.