Webtech Wireless sells Nextbus for $20.75m
Burnaby-based fleet management technology provider Webtech Wireless (TSX:WEW) announced January 24 that it has sold its California-based Nextbus subsidiary to a division of Cubic Corp. (NYSE:CUB) for $20.75 million cash.
NextBus provides passenger information systems to transit agency customers across North America. The software gives passengers real-time arrival information about buses, subways and trains. It also offers commuters a GPS-enabled mobile website that recognizes stops in proximity order among other data.
"When we acquired the Nextbus business in 2009, we believed it was a jewel in the rough with the potential to produce superior operating results, which would ultimately have significant value as a stand-alone business," said Webtech Wireless CFO Andrew Morton.
"Today's announcement demonstrates that we have delivered on the value we saw."
Webtech Wireless will continue to provide ongoing hardware and other services to NextBus.
Webtech Wireless' shares rose 17.65%, or $0.045, to $0.29. Shares of Cubic Corp. rose 1.81%, or US$0.84, to US$47.36.