27th Nov 2013 08:00
LONDON (Alliance News) - Serco Group PLC Wednesday said it has completed the sale of its London streets maintenance and UK transport technology business to Cubic Corp for an enterprise value of GBP43.5 million.
The disposed business provides maintenance for transport infrastructure such as traffic signals and CCTV systems in London as well as the design, installation and maintenance of UK transportation management technology.
The company had decided that the businesses had limited growth and profit prospects under its ownership because of a lack of synergies with its other transport units.
The sold businesses made about GBP42 million of revenue and GBP8 million of adjusted operating profit in 2012.
Serco expects to book a GBP24 million profit on the sale.
By Steve McGrath; [email protected]; @SteveMcGrath1
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