MELBOURNE: FOS Capital Limited (FOS) announced today it will acquire the street lighting assets of Aldridge Traffic Systems Pty Ltd (ATS) from the financially troubled Traffic Technologies Ltd (ASX: TTI), which entered voluntary administration in April. The $3.1 million acquisition will be funded through a $3.7 million equity raising, with shares offered at a 3.2% discount to the last closing price.
FOS Lighting Pty Ltd, a subsidiary of FOS Capital, will acquire ATS’s street lighting division, which includes data-enabled LED road lighting and related equipment. The deal comprises:
- $0.9 million for plant and equipment
- $0.5 million for inventory
- $1.7 million for intellectual property
FOS will also acquire non-core assets from TTI, including Deneefe, Sunny Signs, L&M, and OTC, which it plans to divest or shut down. Proceeds from these sales, estimated between $0.5 million and $1.0 million, will support the revitalization of ATS. The transaction is expected to close by June 20, 2025.
The acquisition will be financed through a placement of approximately 12.3 million new shares at $0.30 per share, a 3.2% discount to FOS’s last closing price of $0.31 on June 8. The raising, led by Shaw and Partners, will also cover working capital and transaction costs. Upon completion, FOS’s total shares on issue will rise to approximately 67.1 million.
ATS, a 60-year-old industry player, reported $6 million in FY24 revenue from its street lighting and Intelligent Transport Systems (ITS) divisions. However, sales have declined due to operational challenges. FOS Managing Director Con Scrinis, a former Traffic Technologies executive, expressed confidence in restoring ATS’s market position within two years.
“This acquisition aligns with our strategy to expand scale, access new markets, and leverage government infrastructure spending,” Scrinis said. The deal strengthens FOS’s foothold in road lighting, complementing its existing Eclatec product line.
ATS’s SmartCity Technology (TST) platform, which generates recurring revenue from IoT-connected devices, offers long-term growth opportunities. Key clients include government agencies such as Transport for NSW, the Queensland Department of Transport, and Transport for London.
FOS has a track record of integrating acquisitions, including KLIK Systems, which boosted operational efficiency. The company plans to apply similar optimization to ATS.
Settlement of the equity raising is expected by June 20, with new shares commencing trade on the ASX on June 23.