Roadway signage and traffic systems company Traffic Technologies is to raise $10.3 million from investors through a non-renounceable rights issue which is underway.
The company has previously raised $2.17 million from sophisticated investors including $1 million from First Samuel.
The company, which manufactures traffic hardware and provides software for end to end traffic management, IoT and smart city solutions, will use the funds for acquisitions, working capital and to pay down debt.
Debt will be cut by more than 60 per cent and interest costs by $1.6 million a year.
Acquisitions will be ‘accretive and strategic’ to capitalise on Internet of Things (IoT), big data and digitisation technologies, and further commercialise its software as a services offering.
This year Traffic Technologies has bought the businesses of L&M which provides installation and maintenance services, and iTS which is involved in the design, development and manufacture of electronic infrastructure signage and software systems.
iTS’s products directly interface with Traffic Technologies ‘smart city’ platform, allowing for further expansion into the intelligent transport sector.
The company’s EBIT increased 120 per cent in FY21 and revenue grew 18 per cent.
Picture: Traffic Technologies
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