- Sensor Line to be integrated into Quarterhill’s wholly-owned subsidiary, International Road Dynamics (“IRD”)
- Acquisition expands IRD’s geographic footprint and customer base, broadens its sensor product suite and marks its entry into the rail vertical
- Acquisition price of €3.8 million (approximately $6.0 million)
TORONTO, Jan. 5, 2021 /PRNewswire/ – Quarterhill Inc. (“Quarterhill”) (TSX: QTRH) (OTCQX: QTRHF), announces that it has completed the acquisition of all the issued and outstanding shares of Sensor Line GmbH (“Sensor Line”), a German-based Intelligent Transportation Systems (“ITS”) provider of highly regarded fiber optic traffic sensors for road and rail markets, for cash consideration of €3.8 million (approximately $6.0 million). Sensor Line will be integrated into Quarterhill’s wholly-owned subsidiary, International Road Dynamics (“IRD”). All dollar amounts are in Canadian dollars unless otherwise stated.
Sensor Line is a pioneer in the field of fiber optic sensors for road and rail traffic applications. The company’s products are recognized globally as leaders in generating traffic monitoring data used to enhance safety, improve mobility, enable enforcement and reduce the environmental impact within transportation networks. Since its inception in 1996, Sensor Line has installed more than 50,000 systems in 50 countries worldwide.
“This acquisition broadens our product suite and expands our geographic footprint further into the European market,” said Rish Malhotra, CEO of IRD. “Sensor Line’s in-road sensors will further strengthen our enforcement and tolling solutions and IRD’s distribution capabilities will open-up new opportunities to grow the Sensor Line business while serving its long-standing loyal customer base. We are very pleased to welcome the Sensor Line team to IRD and will maintain manufacturing operations at their facility near Munich.”
“This transaction represents the first step by our new management team in the execution of our ITS M&A growth strategy,” said Paul Hill, CEO of Quarterhill. “This acquisition fits well within our financial M&A evaluation criteria. For 2021, Sensor Line is expected to contribute $4.0 – $5.0 million in revenue and $700,000 – $800,000 in Adjusted EBITDA to IRD. With an active pipeline of acquisition opportunities, we believe we are just getting started in terms of expanding our ITS business to capitalize on the attractive and growing demand for tech-enabled infrastructure.”
For more information on Sensor Line, including customer case studies, visit: www.sensorline.de
Quarterhill is a growth-oriented company in the Intelligent Transportation System industry as well as a leader in Intellectual Property licensing. Our goal is to execute an investment strategy that capitalizes on attractive market opportunities within Intelligent Transportation Systems and its adjacent markets to become a global leader. Quarterhill is listed on the TSX under the symbol QTRH and on the OTCQX Best Market under the symbol QTRHF. For more information: www.quarterhill.com
SOURCE Quarterhill Inc.