We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Verra Mobility Corporation (VRRM - Free Report) yesterday announced that it has completed the acquisition of Redflex Holdings Limited and its subsidiaries. The purchase price for each of Redflex’s shares was A$0.96, representing total acquisition value of A$152.5 million. Notably, Redflex will cease to trade on the Australian Securities Exchange, effective close of market on Jun 21, 2021. It’s worth noting here that Verra Mobility entered into the acquisition deal with Redflex in January 2021.
Verra Mobility’s shares gained 1.1% yesterday to eventually close the trading session at $15.33.
Based in Melbourne, Australia, Redflex is a leading intelligent transport solutions technology company, engaged in offering traffic management products and services. The company’s product portfolio boasts several platform-based solutions that leverage advanced sensor and image capture technologies. Its solutions are used across motorway authorities, police and law authorities, and local cities throughout the world. Notably, in 2020, the company generated revenues of $71.8 million and an EBITDA of $13.3 million.
Benefits of the Acquisition
Redflex’s expertise in traffic and safety solutions, coupled with its strong innovation and technology capabilities, will extend Verra Mobility’s smart transportation solutions portfolio. Also, the acquisition will expand Verra Mobility’s scale and customer reach across Asia Pacific, Europe, North America, the United Kingdom, as well as Middle East regions.
Notably, Redflex, which will operate as a wholly owned subsidiary, will be part of Verra Mobility’s Government Solutions business segment. The Government Solutions segment is engaged in providing automated safety solutions to counties, municipalities, school districts and law enforcement agencies. In first-quarter 2021, the segment reported revenues of $44.2 million, reflecting a decline of 20% on a year-over-year basis.
Verra Mobility anticipates to realize cost synergies of roughly $8-$10 million in the next couple of years.
Zacks Rank, Price Performance and Estimate Revisions
Verra Mobility, with approximately $2.5 billion market capitalization, currently carries a Zacks Rank #3 (Hold). The company is likely to benefit from solid portfolio of products and solutions, acquired assets and reopening of global economies. However, headwinds across its rental car industry are likely to affect its performance in the near term.
In the past three months, the company’s share price has increased 11% compared with the industry’s growth of 8.4%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for its earnings is pegged at 69 cents for 2021, up 11.3% from the 60-day-ago figure. The consensus estimate for 2022 earnings is pegged at 85 cents, up 11.8% over the same time frame.
Allegion delivered an earnings surprise of 25.16%, on average, in the trailing four quarters.
Ituran Location delivered an earnings surprise of 40.38%, on average, in the trailing four quarters.
Johnson Controls delivered an earnings surprise of 12.93%, on average, in the trailing four quarters.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Image: Bigstock
Verra Mobility (VRRM) Buys Redflex, Strengthens Product Offerings
Verra Mobility Corporation (VRRM - Free Report) yesterday announced that it has completed the acquisition of Redflex Holdings Limited and its subsidiaries. The purchase price for each of Redflex’s shares was A$0.96, representing total acquisition value of A$152.5 million. Notably, Redflex will cease to trade on the Australian Securities Exchange, effective close of market on Jun 21, 2021. It’s worth noting here that Verra Mobility entered into the acquisition deal with Redflex in January 2021.
Verra Mobility’s shares gained 1.1% yesterday to eventually close the trading session at $15.33.
Based in Melbourne, Australia, Redflex is a leading intelligent transport solutions technology company, engaged in offering traffic management products and services. The company’s product portfolio boasts several platform-based solutions that leverage advanced sensor and image capture technologies. Its solutions are used across motorway authorities, police and law authorities, and local cities throughout the world. Notably, in 2020, the company generated revenues of $71.8 million and an EBITDA of $13.3 million.
Benefits of the Acquisition
Redflex’s expertise in traffic and safety solutions, coupled with its strong innovation and technology capabilities, will extend Verra Mobility’s smart transportation solutions portfolio. Also, the acquisition will expand Verra Mobility’s scale and customer reach across Asia Pacific, Europe, North America, the United Kingdom, as well as Middle East regions.
Notably, Redflex, which will operate as a wholly owned subsidiary, will be part of Verra Mobility’s Government Solutions business segment. The Government Solutions segment is engaged in providing automated safety solutions to counties, municipalities, school districts and law enforcement agencies. In first-quarter 2021, the segment reported revenues of $44.2 million, reflecting a decline of 20% on a year-over-year basis.
Verra Mobility anticipates to realize cost synergies of roughly $8-$10 million in the next couple of years.
Zacks Rank, Price Performance and Estimate Revisions
Verra Mobility, with approximately $2.5 billion market capitalization, currently carries a Zacks Rank #3 (Hold). The company is likely to benefit from solid portfolio of products and solutions, acquired assets and reopening of global economies. However, headwinds across its rental car industry are likely to affect its performance in the near term.
In the past three months, the company’s share price has increased 11% compared with the industry’s growth of 8.4%.
The Zacks Consensus Estimate for its earnings is pegged at 69 cents for 2021, up 11.3% from the 60-day-ago figure. The consensus estimate for 2022 earnings is pegged at 85 cents, up 11.8% over the same time frame.
Key Picks
Some better-ranked stocks from the same space are Allegion plc (ALLE - Free Report) , Ituran Location and Control Ltd. (ITRN - Free Report) and Johnson Controls International plc (JCI - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Allegion delivered an earnings surprise of 25.16%, on average, in the trailing four quarters.
Ituran Location delivered an earnings surprise of 40.38%, on average, in the trailing four quarters.
Johnson Controls delivered an earnings surprise of 12.93%, on average, in the trailing four quarters.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>