(RTTNews) - Quarterhill Inc. (QTRH.TO), a provider of tolling and mobility solutions, Tuesday announced that it has agreed to acquire substantially all of the assets of the tolling solutions business of Conduent Business Services, LLC and certain of its affiliates collectively called Conduent.
The company expects this transaction to nearly triple its tolling revenue upon closing and create a tolling platform with greater scale, long-term backlog visibility and enhanced capabilities across electronic tolling, back-office operations and roadside systems.
Upon closing of the deal, Quarterhill and the Business are expected to have approximately $2 billion of combined backlog and on a proforma basis, the combined companies are surmised to have generated more than $400 million of revenue annually with an adjusted EBITDA margin between 10 percent and 15 percent.
As per the agreement, Quarterhill and certain of its affiliates will acquire substantially all of the assets, and assume certain liabilities, of the business for a consideration consisting of $70 million in cash along with common shares in the capital of Quarterhill, representing 7 percent of the outstanding shares upon transaction close.
The company anticipates funding the cash portion of the transaction with through debt. The deal is expected to close in the fourth quarter.
On Monday, QTRH.TO shares closed at $1.72, 2.99% on the Toronto Stock Exchange.
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