Federal Signal Corp to acquire RFID specialist Sirit for C$49.5 million in cash

Federal Signal (NYSE: FSS) has entered into an agreement to acquire Sirit (TSX: SI), a radio frequency identification ("RFID") specialist in a transaction that values Sirit at C$49.5 million.

Federal Signal is offering 30 cents per share in cash for, which represents a 37% premium to Sirit’s 30 day average closing price on the TSX.

 Sirit designs and manufactures RFID products which are used in a wide variety of applications, including Tolling, Electronic Vehicle Registration, Parking and Access Control, Asset Management, Cashless Payments and Supply Chain Systems.

Federal Signal intends to combine Sirit’s RFID technology with its own detection and classification technology that it acquired through the purchase of Diamond Consulting in December 2009.

"We are excited about this transaction with Sirit, as it further strengthens Federal Signal's best-in-class product portfolio and advances our stated strategy of driving growth through our Public Safety Systems platform," said William Osborne, Federal Signal's President and Chief Executive Officer. "Sirit, Diamond Consulting Services and PIPS have a proven record of success in jointly delivering superior technology-based client solutions. We are committed to investment in research and development to maintain Sirit's reputation for technical excellence and with the addition of Sirit's talented employees, we look forward to further differentiating Federal Signal's Public Safety Systems offering."

Sirit's board of directors have unanimously approved the transaction.

Federal Signal is a designer and manufacturer of products and total solutions that serve municipal, governmental, industrial and institutional customers. http://www.proactiveinvestors.com/companies/news/3666/federal-signal-corp-to-acquire-rfid-specialist-sirit-for-c495-million-in-cash-3666.html