Menu
EugeneThePanda.com
  • Brick Panda
  • Traveling Panda
  • Hungry Panda
  • Me Panda
  • About The Panda
EugeneThePanda.com

ST Engineering Accelerates Smart City Growth with Acquisition of TransCore for US$2.68b

Posted on October 5, 2021January 23, 2022

Singapore, 3 October 2021 – Singapore Technologies Engineering Ltd (ST Engineering) today announced that it has entered into an agreement to acquire all the ownership interests in TransCore Partners, LLC and TLP Holdings, LLC (collectively TransCore) from an indirect wholly-owned subsidiary of Roper Technologies, Inc. (the Acquisition). The aggregate purchase price for the Acquisition is US$2.68 billion (S$3.62 billion) in cash on a cash-free and debt-free basis, subject to certain purchase price adjustments.

The Acquisition will accelerate ST Engineering’s Smart City growth and position it as a market leader in Smart Mobility. TransCore has more than 80 years of history, and is a leader in the transportation industry in North America. It provides innovative technical solutions and engineering services for applications encompassing next-generation electronic toll collection, congestion pricing, Intelligent Transportation Systems (ITS), back office solutions and RFID products. TransCore is contracted to deliver a congestion pricing project in Manhattan, New York, the first ever in the U.S.

“The Smart City space has been an important strategic focus area for ST Engineering. TransCore is a strong strategic fit for us and its road transportation solutions will complement and enhance our suite of Smart Mobility rail and road solutions. With this acquisition, we will be uniquely positioned as a Smart Mobility market leader, underpinned by our strengths in technology and innovation. This acquisition demonstrates our continued commitment to create long-term value for our shareholders through sustainable global growth,” said Vincent Chong, Group President & CEO of ST Engineering. “Roper management has well guided and supported TransCore in their growth journey to become a leader in the transportation industry in North America. We value the opportunity to work with the Roper team on this acquisition.”

Acquisition Provides Strategic and Financial Benefits
The addition of TransCore will advance ST Engineering’s leadership position in developing Smart City solutions to enable smarter and sustainable cities, and at the same time will deliver value for ST Engineering’s shareholders. The acquisition rationale includes:

  • Enhances Smart Mobility offerings
    TransCore’s electronic toll collection, congestion pricing and ITS solutions are highly complementary to ST Engineering’s smart, integrated mobility solutions and will result in a comprehensive suite of world-class Smart Mobility offerings for customers. The North America electronic toll collection and ITS markets, in which TransCore has leadership positions, are expected to grow from US$2.5 billion in 2021 to more than US$4 billion in 20301.
  • Accelerates growth and fuels innovation
    The Acquisition will accelerate ST Engineering’s growth in the Smart City domain. The combined businesses will continue to focus on technology and innovation centering on next-bound transportation technologies, backed by ST Engineering’s strong technology know-how and engineering core as well as TransCore’s deep capabilities that include a range of patents and IP rights in electronic toll collection, congestion pricing and ITS solutions.
  • Strengthens commitment to sustainability
    TransCore’s end-to-end transportation solutions are designed to reduce traffic congestion and lower vehicle emissions, which align to ST Engineering’s commitment to leverage technology and innovation to help cities deal with the impact of urbanisation and climate change. ST Engineering has implemented over 700 smart city projects in over 130 cities, including 60 intelligent road transportation projects in more than 20 cities worldwide.
  • Achieves synergies through cross-selling
    TransCore’s leading position in the end-to-end electronic toll collection and congestion pricing segments in North America represents a new business for ST Engineering. This business combination allows for cross-selling of ST Engineering’s current ITS solutions such as smart road junctions, transportation operation centres and road traffic optimisation systems to North America. At the same time, TransCore’s electronic toll collection and congestion pricing solutions could be offered to customers in the Southeast Asia region where ST Engineering has a strong presence.
  • Generates cash and provides earnings accretion
    The Acquisition is expected to be cash flow positive from the first year and earnings accretive from the second year post-acquisition.
    ST Engineering’s dividend payout capacity will remain strong as TransCore’s operations are expected to generate healthy cash flow.

“With this acquisition, our Smart City businesses will be better positioned to capture growth at the intersection of urbanisation, digitalisation and sustainability. TransCore’s market leading end-to-end tolling solutions and congestion pricing businesses, supported by a strong track record of execution and talented team, are poised for global expansion as part of ST Engineering group. We are committed to continue delivering excellent customer service and project execution for TransCore’s customers,” said Chew Men Leong, President of Urban Solutions at ST Engineering.

“ST Engineering will be a great owner for TransCore and will support the business as it pursues the next phase of its innovative work in traffic management, tolling technology, and smart city infrastructure,” said Neil Hunn, Roper Technologies’ President and CEO. “We are grateful to Tracy Marks, TransCore’s President, and the entire TransCore team for their many contributions to Roper.”

Continued Investment in TransCore
TransCore has a strong management team and talented workforce, and ST Engineering is committed to invest in the team and grow the business going forward. With the global scale, networks and resources of ST Engineering, the combined business will be able to better meet demand and better serve its customers in the smart mobility sector.

Details of the Acquisition
The Acquisition translates to a EV2/EBITDA3 multiple of 16.2 times after accounting for tax benefits.

Based on the unaudited financial statements of the TransCore business for the six (6) months ended 30 June 2021, the profit including discontinued operations that have not been disposed and before income tax and non-controlling interests is approximately US$54 million (S$72 million).

The transaction is expected to close by the end of the first quarter of 2022, subject to regulatory approvals, customary closing conditions and approval from ST Engineering’s shareholders at an Extraordinary General Meeting to be convened.

Sources:

https://www.stengg.com/en/newsroom/news-releases/st-engineering-accelerates-smart-city-growth-with-acquisition-of-transcore-for-us-268b/

Leave a Reply Cancel reply

You must be logged in to post a comment.

Categories

  • Food
    • Food Asia
    • Food Beverage
    • Food Dessert
    • Food Favorite
    • Food Home Cooking
    • Food Irvine
    • Food Las Vegas
    • Food Los Angeles
    • Food Michelin
    • Food Presentation
    • Food Recipes
    • Food San Diego
    • Food Science
    • Food Taiwan
    • Food Unique
    • Food Vegetarian
    • Food World
  • Home
    • Bed & Bath
    • Designer
    • Garden
    • Home
    • Home Improvement
    • Kitchen
    • Office
    • Product Review
  • Me
    • Art
    • Auto
    • Buddhism
    • Cartoon
    • Chinese
    • Family
    • Finance
    • Health
    • History
    • Humor
    • Lego
    • Movie
    • Music
    • News
    • Real Estate
    • San Diego
    • Taiwan
    • Technology
    • Values
  • Travel
    • Austria
    • Bahamas
    • California
    • China
    • Czech Republic
    • England
    • France
    • Germany
    • Greece
    • Haiti
    • Hungary
    • India
    • Italy
    • Jamaica
    • Japan
    • Malaysia
    • Mexico
    • Nepal
    • South Korea
    • Taiwan
    • USA
  • Uncategorized

Tags

2012 Italy 2012 London 2012 Paris 2013 Taiwan 2015 Colorado 2015 Cruise 2015 Nebraska Christmas 2015 Southwest 2015 Yosemite 2016 Malaysia 2016 Seattle 2016 Taiwan 2017 Atlanta 2017 Canyon 2017 Desert 2017 Europe Christmas 2017 Washington DC 2018 Hong Kong 2018 India 2018 Jiang Nan 2018 Nebraska 2018 New York City 2018 Seoul 2018 Taiwan 2018 Washington DC 2018 Yunnan 2019 Greece 2020 Taiwan 2021 Las Vegas 2022 Caribbean Cruise 2023 Kyoto Osaka 2023 Taiwan

Archives

  • March 2025
  • February 2025
  • November 2024
  • October 2024
  • September 2024
  • August 2024
  • June 2024
  • May 2024
  • April 2024
  • March 2024
  • February 2024
  • January 2024
  • December 2023
  • November 2023
  • October 2023
  • September 2023
  • August 2023
  • July 2023
  • June 2023
  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • February 2020
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • April 2019

Meta

  • Log in
  • Entries feed
  • Comments feed
  • WordPress.org
©2025 EugeneThePanda.com | WordPress Theme by Superb WordPress Themes