3M to Buy Toll Collection Tech Biz for $110M
3M Company announced Thursday that it plans to buy Federal Signal Technologies Group (FSTech), a division of Oak Brook, Illinois-based Federal Signal Corporation.
Maplewood-based 3M will pay $110 million in cash for FSTech, which makes electronic toll collection and parking management systems. 3M expects to close the deal later this year.
FSTech employs approximately 500 people in Arizona, California, Illinois, Michigan, Missouri, North Carolina, Tennessee, Texas, Hong Kong, Dubai, and the United Kingdom. Its products include toll collection hardware and software, vehicle identification systems, license plate recognition systems, and parking lot fare collection systems.
FSTech’s 2011 revenue totaled $106.9 million, according to U.S. Securities and Exchange Commission filings.
3M said that FSTech’s offerings will add to its own traffic products and services related to transportation safety, traffic management, vehicle registration, and commercial transportation.
“3M’s expertise and innovation in the traffic industry make it a natural choice to continue to build this important business for our customers and for drivers everywhere,” Dan McGurran, director of 3M’s motor vehicle systems and services division, said in a statement.
3M is Minnesota’s fifth-largest public company based on revenue, which totaled $29.6 billion in 2011.