Cubic Corp. Completes Acquisitions Of Delerrok And Pixia - Quick Facts

(RTTNews) - Cubic Corp. (CUB) said Monday it has completed the acquisitions of Delerrok and Pixia, noting that the acquisitions will strengthen its NextCity and NextMission Strategies.

Delerrok is a provider of a cloud-hosted, multi-agency fare collection platform for small- to mid-sized transit operators, while Pixia is a provider of cloud-based solutions to manage and access massive amounts of imagery data.

Cubic acquired the remaining 82.5 percent of Delerrok's outstanding equity for $36.4 million. In prior fiscal years, the company paid $6.5 million to acquire an initial 17.5 percent stake.

The company expects the transaction to be neutral to its adjusted earnings per share by fiscal year 2021 and be accretive beginning fiscal year 2022.

In addition, Cubic acquired the remaining 80 percent of the outstanding equity of Pixia for $200 million. The company had earlier purchased the initial 20 percent of the outstanding capital stock of Pixia for $50 million.

Bradley Feldmann, chairman, president and chief executive officer of Cubic Corp said, "We are pleased to welcome both Delerrok and PIXIA to our Cubic family and look forward to accelerating our key growth priorities in our NextCity and NextMission strategies."

As announced by Cubic on November 20, 2019, the combined transactions are included in its guidance for fiscal year 2020. The transactions are expected to contribute about $40 million in sales, $15 million of adjusted EBITDA and also add about $0.20 to adjusted earnings per share for fiscal year 2020.

Cubic said it will leverage Delerrok's TouchPass platform in combination with its Transit-Management-as-a-Service or TMaaS platform to deliver a comprehensive set of payment, mobile and real-time information solutions at an affordable price.

Pixia will enhance Cubic's Command and Control, Intelligence, Surveillance and Reconnaissance or C2ISR digital platform and further enable real-time, cloud strategy to provide information to the edge of the battlefield.