On May the 10th, 3M announced it had entered into agreements to sell its tolling and automated license plate recognition business to Neology. The two were previously a member of 3M’s Traffic Safety and Security Division. Neology Inc. provides solutions for tolling, public safety applications and electronic vehicle registration services. The business segments acquired from 3M will make a perfect addition to Neology’s current portfolio. 3M’s tolling solutions include a variety of technologies, including RFID readers, tags, lane controllers, host software, automatic vehicle classification systems, and more. Neology will also acquire mobile and fixed cameras, software, and services.
The business normally generates annual global sales of 40 million dollars on average. While the transaction is subject to customary closing conditions, it is expected to close by the 3rd quarter of this year. The transaction will also need to meet regulatory approvals. Upon completion, it is expected that 85 employees will be transferred to Neology. KPMG Corporate Finances was the exclusive financial adviser to 3M for the sale.