3M has entered into agreements to sell its tolling and automated license/number plate recognition business, part of 3M’s Traffic Safety and Security Division, to Neology, Inc., a leading provider of integrated solutions for tolling, electronic vehicle registration and public safety applications.
Neology is a subsidiary of SMARTRAC, aportfolio company managed by One Equity Partners, a middle-market private equity firm.
3M’s tolling solutions include RFID readers and tags, automatic vehicle classification systems, lane controller and host software, and back office software and services. It also provides mobile and fixed cameras, software, and services in automated license/number plate recognition. The business has annual global sales of approximately $40 million.
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“3M believes that the best path forward for this business is with a company focused on tolling and electronic vehicle registration technology,” said John Riccardi, vice president and general manager, Traffic Safety and Security Division.
“We thank employees for their commitment and service to the business.”
The businesses are highly complementary and combining their technologies will enable customers to benefit from integrated end-to-end solutions in the Electronic Toll Collection (ETC) market.
They will be able to move seamlessly to new toll technologies with all needed equipment supplied by the new, comprehensive organization.
“Combining 3M’s Tolling and Automated License Plate Recognition business with Neology, a pioneer in the development of passive RFID technology is a perfect example of how OEP builds leading companies by executing transformative business combinations,” said Dr. Jörg Zirener, Managing Director at OEP.
“The combined business creates a market leader with a broad range of best-in-class products and excellent customer relationships.”
“The entire Neology team is excited to become part of this winning combination,” said Francisco Martinez de Velasco, President and CEO of Neology.
“As we join forces with 3M’s Tolling and Automated License/Number Plate Recognition business, Neology will become a full-service provider of tolling and vehicle identification products and solutions along the entire value chain.”
“This will enhance our ability to develop highly innovative and integrated solutions to meet our customers’ evolving needs.”
The transaction is expected to close by the third quarter of 2017, and is subject to customary closing conditions, regulatory approvals and consultation or information requirements with relevant works councils.
Approximately 85 employees are expected to join Neology upon completion of the sale.
Neology is a leading provider of integrated solutions for the tolling, electronic vehicle registration (EVR) and public safety markets. The company is a pioneer and leader in the development of passive RFID technology owning some of the earliest and most significant intellectual property (IP) in the industry.