Sensys Traffic is to acquire Dutch enforcement company Gatso in a deal worth around US$33.9 million.
Sensys’ acquisition of Gatso and the merger of the operations the two companies will create the largest supplier of traffic enforcement equipment with a strong presence in Europe, the Middle East, Asia and Australia, as well as the North American managed services market. The combined company will operate under the name Sensys Gatso Group, with an installed base of 18,000 systems and 202 employees.
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Sensys’ acquisition of Gatso and the merger of the operations the two companies will create the largest supplier of traffic enforcement equipment with a strong presence in Europe, the Middle East, Asia and Australia, as well as the North American managed services market. The combined company will operate under the name Sensys Gatso Group, with an installed base of 18,000 systems and 202 employees.
The transaction combines the customer base and capabilities of the two companies, which they say will reduce the volatility of the project oriented equipment markets while providing better growth opportunities in the managed services markets.
Both companies have very strong presence in their respective markets and complement each in market coverage as well as in product and technology portfolio, while sharing similar company culture and values.
"Sensys and Gatso complement each other very well and still share the fundamental values and ethics that are needed to build sustainable business growth in the enforcement market,” says Torbjörn Sandberg, CEO of Sensys Traffic. “Sensys and Gatso will be significantly stronger together than as individual companies. The Sensys Gatso Group comes out of the merger in the pole position in the equipment market being the market leader and as a challenger with solid foothold in the managed services market. We expect synergies in sales where our combined sales force will be able achieve better market coverage while we also get a broader product portfolio to bring to our joint customer base. On top of the strong market position, synergies in R&D will provide a great focus on core technologies, software as well as on customised solutions allowing the company to expand into new markets."
Timo Gatsonides, CEO of Gatso adds “Integrity, dedication and innovation were the cornerstones of Gatso when my grandfather Maurice founded the company 57 years ago. Those values made us strong and it’s those values which continue to lead us today - inspiring our people worldwide. Today, more than ever, governments around the globe are challenged by the negative effects of increased mobility and urbanisation. Fast-paced innovations as part of an holistic approach are pivotal in helping governments keep their citizens safe in traffic. This is why I’m extremely happy that we’ve found in Sensys a partner who shares the same fundamental values and views. This merger will forge innovations that will likely re-shape the managed services market for road safety.”
The acquisition is conditional upon the resolutions to be taken and approved at an extraordinary general meeting to be held on 24 July. The acquisition is expected to be finalised around early August 2015.
