Cubic (CUB) Agrees to Acquire Operations Center, Licenses on Certain Software from Vix ERG Pty Ltd.

July 6, 2009 8:04 AM EDT

Cubic Transportation Systems, Inc., a subsidiary of San Diego-based Cubic Corporation (NYSE: CUB), announced that it has signed an agreement to acquire the Concord, Calif., operations center and licenses on select software from the U.S. subsidiary of Australia-based Vix ERG Pty Ltd. Cubic will use these assets to expand services to transit agencies in San Francisco, Seattle, Boston, Ventura and Las Vegas. The newly acquired operation will add approximately $20 million in annual revenues, and broadens a Cubic services base that already includes numerous transit properties on three continents.

The agreement initially will cover servicing the TransLink contract in the San Francisco Bay Area; and eventually will include the other transit agencies currently using Vix ERG MASS systems.

As part of this purchase, Cubic has acquired a fully functioning comprehensive service operation in Concord, Calif., designed specifically to support public transport authorities with complete solutions for smart card distribution and call center operations. Approximately 125 ERG employees have joined Cubic from ERG's U.S. operations and engineering operations in Perth, Australia.

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