OAK BROOK, Ill. (AP) -- Federal Signal Corp. said Thursday it is acquiring Canadian radio frequency identification technology provider Sirit Inc. for roughly $48 million in cash, in U.S. dollars.
Federal Signal, which manufactures safety, signaling and communications equipment and fire rescue vehicles, will acquire Sirit for 30 Canadian cents per Sirit share in cash. Federal Signal will finance the transaction with cash on hand and existing bank lines of credit.
The price represents a premium of 37 percent over Sirit's 30-day average closing stock price in Toronto.
Sirit designs, develops and manufactures RFID technology for applications such as tolling, electronic vehicle registration, parking and cashless payments.
A special meeting of Sirit shareholders will be held in late February to consider the transaction. Certain executive officers, directors and shareholders of Sirit owning roughly 28 percent of the company's outstanding shares have already agreed to vote their shares in favor of the deal.
Federal Signal has the right to match any unsolicited superior proposal received by Sirit.
Federal Signal shares rose 6 cents to $6.86 in morning trading.
