TagMaster has signed a Letter of Intent to acquire SA Magsys in France.
Magsys was established in 2003 and is the leading added value ITS (intelligent transportation solutions) distributor in France with a strong foothold in vehicle counting, travel time management and on-street parking monitoring. Magsys are selling towards the French road administrations in cities, departments and to highways (toll roads). Sales for 2018 are expected to reach 2,5M€ with a good EBITDA margin.
The consideration will be funded from the existing bank facilities and the acquisition is expected to be earnings enhancing to TagMaster in the first full financial year following the transaction.
The transaction is conditional upon a successful due diligence and is expected to close before end of 2017.
”TagMaster is excited about this important step in our growth strategy and we will together with Magsys become a stronger player in the Traffic solutions market in France. Following this acquisition we will continue to establish ourselves as an important player in Smart City solutions. There are clear and immediate synergies between Magsys and CA Traffic and CitySync. With the combined expertise at Magsys and CA Traffic and CitySync we believe we have an excellent opportunity to become one of the main players in the fast growing French ITS market. We will also take full advantage of CA Traffic’s technical expertise in traffic monitoring products and start distribute them through Magsys strong clientbase in France.” says Jonas Svensson, CEO, TagMaster
Commenting on the acquisition, Jean-Marc Coutellier Magsys MD, said “We are very pleased to be joining the TagMaster Group. We recognise and welcome the strength that the union will bring to both brands and the synergies that are immediately apparent with the other TagMaster companies.”