3M announced it has entered into agreements to sell its tolling and automated licence plate recognition business — part of 3M’s Traffic Safety and Security Division, to Neology Inc., a provider of integrated solutions for tolling, electronic vehicle registration and public safety applications. Neology is a subsidiary of SMARTRAC, a portfolio company managed by One Equity Partners, a middle-market private equity firm.
According to 3M, its 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 licence/number plate recognition. The business has annual global sales of approximately US$40 million.
“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, in a statement. “We thank employees for their commitment and service to the business.”
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.
KPMG Corporate Finance acted as the exclusive financial adviser to 3M on the sale.