Neology is to acquire the tolling and automated license/number plate recognition business of 3M’s traffic safety and security division.
Neology is a subsidiary of SMARTRAC, a portfolio company managed by One Equity Partners (OEP), a middle-market private equity firm.
The transaction is expected to close by the third quarter of 2017, subject to customary closing conditions, regulatory approvals and consultation or information requirements with relevant works councils. Terms of the private transaction were not disclosed.
The business’s tolling solutions include high-quality RFID readers and tags, automatic vehicle classification systems, lane controller and host software, and back office software and services. It also offers a full spectrum of mobile and fixed cameras, software, and services in automated license/number plate recognition.
Neology is a provider of integrated solutions for the tolling, electronic vehicle registration (EVR) and public safety market. The company is a pioneer in the development of passive RFID technology owning significant intellectual property (IP) in the industry. It covers important pieces of the electronic toll collection (ETC) value chain such as RFID tags, lane controllers and back office processing capability.
The businesses are highly complementary and combining their technologies will enable customers to benefit from integrated end-to-end solutions in the ETC market. They will be able to move seamlessly to new toll technologies with all needed equipment supplied by the new, comprehensive organisation.
“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,” says 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,” says 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.”
