Sirit now set to become part of FS

Sirit shareholders have approved 46c/share (C-shares) price for their acquisition by Federal Signal (FS) after a mystery competitor for control of the Toronto Canada based electronic toll systems supplier caused two previous increases in the price bid by Federal Signal. Approval was by majority vote at a shareholder meeting in Toronto today.

The original price of 30c/share for the FS acquisition was supported by officers and principal shareholders but a mystery "unsolicited bidder" intervened to cause two increases in price to 46c.

The acquisition price is now C$74m, around $70m. A couple of months ago Sirit was trading at less than C$30m, about $28m.

“We are pleased with the shareholder support demonstrated by today’s vote,” Norbert Dawalibi, President and Chief Executive Officer of Sirit is quoted in a statement today.

 “We believe that our agreement with Federal Signal is in the best interests of our shareholders, our employees and the future of our businesses. The combination with Federal Signal delivers swift and certain value for Sirit shareholders and opens up new opportunities for our business and employees as part of a larger organization with greater financial resources.”

“On behalf of Sirit’s Board of Directors and management team, I want to thank our hard-working employees for their support throughout this process. We look forward to completing this transaction as quickly as possible and we anticipate a smooth transition,” concluded Mr. Dawalibi.

The Company hopes to close the transaction about March 5, 2010, assuming there are no legal obstacles raised.

Federal Signal is becoming a power in electronic tolling by acquiring several specialized firms such as Sirit.

TOLLROADSnews 2010-02-26