ST Engineering‘s shareholders have approved the acquisition of TransCore Partners and TLP Holdings from a wholly owned subsidiary of U.S.-listed Roper Technologies for US$2.68 billion by a 99.92 percent to 0.08 percent vote at an extraordinary general meeting Wednesday.
TransCore provides innovative technical and engineering services, including next-generation electronic toll collections, congestion pricing, Intelligent Transportation Systems (ITS), back-office solutions and RFID products. TransCore is currently under contract to deliver the U.S.’s first ever congestion pricing system in Manhattan in New York City, ST Engineering has previously said.
In answers to questions from shareholders, filed to SGX prior to the EGM, ST Engineering said TransCore has build a robust business from deep customer relationships, innovative technology, extensive patens and a strong contract backlog.
When it announced the deal in October, ST Engineering said acquiring TransCore would boost the company’s Smart City business, particularly in Smart Mobility.
ST Engineering has estimated that by 2026, the Smart City segment is expected to post revenue of S$3.5 billion, with contributions from TransCore.
TransCore is expected to be cash-flow positive from the first year after the acquisition and earnings accretive from the second year, ST Engineering said.
“The Smart City space has been an important strategic focus area for ST Engineering and TransCore is a strong strategic fit for us. Its road transportation solutions will enhance our suite of Smart Mobility solutions which will further strengthen our capabilities in the Smart Mobility domain,” ST Engineering said in replies to EGM questions.
“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. The addition of TransCore into ST Engineering will create a larger group with enhanced products and solutions, new business and footprint in a new geography,” the company added. “It would have taken us extensive time and resources to organically develop a business of this scale and potential.”
The acquisition will be fully funded with debt issuance, ST Engineering said.