Verra Mobility's Pagatelia Buyout To Aid Business In Europe
Zacks Investment Research | Oct 16, 2019 10:43PM ET
Verra Mobility Corporation (NASDAQ:VRRM) announced that it signed an agreement to acquire the Spain-based company, Pagatelia. Financial terms of the transaction have been kept under wraps.
The buyout news seemed to have lifted market sentiments, as evident from roughly 1.36% increase in the company’s share price yesterday.
Notably, Pagatelia is a renowned European company engaged in providing electronic tolling solutions. Operating in Italy, Spain, France and Portugal, the firm provides services mainly to car manufacturers, individual drivers, highway and parking operators, and financial institutions.
Inside the Headlines
Verra Mobility will integrate the acquired assets with its Commercial Services segment, strengthening its offerings (related to parking and tolling) to fleet and rental car companies in Europe. It also pointed out that the buyout will help it benefit from an expanding global tolling market.
In second-quarter 2019, the Commercial Services segment accounted for 62.1% of Verra Mobility’s revenues. On a year-over-year basis, the segment’s revenues represented 13.9% growth from the year-ago quarter.
Subject to the fulfillment of customary closing conditions, the company anticipates the transaction to be completed by the end of October.
Growth Initiatives
We believe that the above-mentioned transaction is consistent with Verra Mobility’s policy of gaining access to new customers, regions and product lines through acquisitions, partnerships and other means.
In April 2018, the company acquired Euro Parking Collection plc, thereby strengthening operations in European markets. Also, Verra Mobility collaborated with APRR to provide services related to toll management throughout France.
Zacks Rank & Key Picks
With a market capitalization of nearly $2.2 billion, the company currently carries a Zacks Rank #3 (Hold). In the past three months, its share price has increased 3.6% against the Zacks Investment Research
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