Cubic Completes the Acquisition of the Transport Solutions Business of Serco
SAN DIEGO -- November 27, 2013
Cubic Corporation (NYSE: CUB) announced today that it has completed the
acquisition of Serco’s Transport Solutions business for an enterprise value of
£43.5 million ($70 million) subject to adjustment as set forth in the purchase
agreement. Cubic announced last June that it had entered into exclusive due
diligence for the acquisition. Serco’s Transport Solutions business will
become a part of Cubic Transportation Systems, a leading integrator of payment
and information technology and services for intelligent travel solutions.
Serco’s Transport Solutions business is primarily a UK-based transport
technology and services business and had revenues in the last calendar year of
approximately £42 million ($67 million).
For more than 20 years, Serco’s Transport Solutions business has specialized
in the development and supply of complex traffic management systems for the
monitoring and control of urban and intra-urban road networks, encompassing
integrated traffic and incident management, decision support, bus tracking and
passenger information through integrated user interfaces.
The business also provides safety camera and associated back office solutions
as well as a complete capability for the installation and maintenance of
intelligent transport systems and equipment, such as maintaining over a third
of London’s traffic lights.
“We’re delighted that Serco’s Transport Solutions team today becomes part of
the Cubic family,” said Steve Shewmaker, president of Cubic Transportation
Systems and executivevice president of Cubic Corporation.
“The business has excellent specialist knowledge and capability in the
enforcement, road and traffic markets, which is integral to our own NextCity
vision of integrated solutions that help transport operators manage their
operations and services and give travellers informed choices when deciding how
and when to make their journeys.
“Additionally, Transport Solutions includes amongst its customers Transport
for London and Transport for New South Wales, which are already Cubic
customers, as well as other major organizations such as the Highways Agency
and Transport Scotland. Taken all together, that business mix means the
acquisition and subsequent integration of the business is a move that is both
logical and exciting for Cubic.”
David Stretch, Serco’s partnership director for Transport, said, “As part of
Serco’s proactive portfolio management and followinga strategic review of our
UK transport operations, Serco has decided to divest its UK-focused Transport
Solutions and London Streets Maintenance business. Transport continues to be a
key market for Serco in which we are bidding for a number of major new
transport contracts and where we will continue to deliver high-quality
services, drive innovation and pursue growth opportunities for our customers.
I would like to thank colleagues for their hard work and commitment in
building Transport Solutions into a successful business.”
Serco Transport Solutions employs 253 people across the UK and three in
Australia with offices in Stockton on Tees, Beckton (East London), Belfast,
Birmingham and Cumbernauld, near Glasgow, as well as in Sydney, Australia.
About Cubic Corporation
Cubic® Transportation Systems, Inc., is part of Cubic Corporation. Cubic
Corporation is the parent company of three major business segments: Defense
Systems, Mission Support Services and Transportation Systems. Cubic Defense
Systems is a leading provider of realistic combat training systems and secure
communications systems. Mission Support Services is a leading provider of
training, operations, maintenance, technical and other support services for
U.S. and allied nations.
Cubic® Transportation Systems, Inc., is a leading integrator of payment and
information technology and services for intelligent travel solutions. Cubic
delivers integrated systems for transportation and traffic management,
delivering tools for travelers to choose the smartest and easiest way to
travel and pay for their journeys, and enabling transportation authorities and
agencies to manage demand across the entire transportation network – all in
real-time. Cubic specializes in design, development, manufacture, supply,
installation, integration, services and information. Services provided by
Cubic include on-site management, central systems, operations support, patron
support, business support and field services.
Every year, nearly 7 billion rides are taken worldwide using Cubic payment and
information systems. Cubic has delivered over 400 projects in 40 major markets
on five continents. Active projects include London; Brisbane (Southeast
Queensland) region, Australia; New York/New Jersey region; Washington,
D.C./Baltimore/Virginia region; Los Angeles region; San Diego region; San
Francisco region; Minneapolis/St. Paul; Chicago; Atlanta region; Miami (South
Florida) region; Vancouver and Edmonton, Canada; Sydney (New South Wales),
Australia; Germany; and Scandinavia.
For more information about Cubic, see the company’s website at www.cubic.com.
Serco is an international service company, which combines commercial know-how
with a deep public service ethos.
Around the world, we improve essential services by managing people, processes,
technology and assets more effectively. We advise policy makers, design
innovative solutions, integrate systems and - most of all - deliver to the
Serco supports governments, agencies and companies who seek a trusted partner
with a solid track record of providing assured service excellence. Our people
offer operational, management and consulting expertise in the aviation, BPO,
defence, education, environmental services, facilities management, health,
home affairs, information and communications technology, knowledge services,
local government, science and nuclear, transport, welfare to work and the
More information can be found at www.serco.com.
Serco’s transport business
Serco delivers innovative transport solutions, whether by air, road, water or
rail, to public transport authorities, government departments and commercial
enterprises around the world.
Our focus on operational efficiencies and improving sustainability support our
customers in meeting their strategic aims and objectives. Serco's experience
in providing a wide range of multi-modal transport solutions in Asia, Europe,
the Middle-East and North America enables us to tailor our services to meet
the needs of a diverse travelling public. Our aim is to ensure that by
delivering high-quality services, we can make a difference to people's
journeys and lives.
Serco has a successful track record and compelling offer in both the UK and
global light and heavy rail markets. We operate the UK's largest passenger
rail franchise, Northern Rail as well as Merseyrail with our joint venture
partner, Abellio. Since 1997, Serco has operated and maintained London’s
award-winning Docklands Light Railway (DLR). In Australia, we own Great
Southern Rail which operates the iconic tourist trains - The Indian Pacific,
the Ghan and the Overlander - and in the Middle East we have been operating
the driverless Dubai Metro system since 2008.
Serco operates the iconic Barclays Cycle Hire Scheme in London on behalf of
Transport for London (TfL). Launched in 2010, Serco designed, built and
implemented this innovative scheme, in conjunction with TfL. Today, the scheme
has seen over 25 million hires and has been expanded across the capital.
Also, in the UK, Serco operates NorthLink Ferries to the Shetland Islands and
Orkney Islands, building on our experience delivering a range of marine
support services for the Royal Navy. In the USA, Serco provides a bus
transportation service to and from Washington Dulles International Airport for
the US National Conservation Training Centre. We also provide on demand and
scheduled bus services for the UK’s Royal Air Force.
Serco is the only significant non-government provider of air traffic services
in the world. We operate on a global basis and handle about six million
aircraft movements each year at airports in Europe, the Middle East and North
America on behalf of the UK’s Ministry of Defence, the US Federal Aviation
Administration and the United Arab Emirates’ Area Control Centre in Abu Dhabi.
Serco also recently secured a major US contract to integrate and operate the
state of Virginia’s five transport operation centres.
Rosemary Alton/Harriet Jamieson
+44 (0) 20 8289 6216
Timothy A. Hill
Director of Corporate Communications
+1 (858) 505-2430
Cell: +1 (858) 232-2927
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