Neither Redflex Traffic Systems nor Verra Mobility are currently profitable, but that will not stop the two photo enforcement giants from merging. Verra Mobility (formerly American Traffic Solutions) won over Australian shareholders after Verra increased its buy-out offer to 96 cents from 92 cents per share. Once joined, the newly enlarged Verra Mobility will elevate its already dominant position to the status of near monopoly in the red light camera and speed camera market.
Verra paid $152 million for Redflex, the second-largest operator of red light camera and speed cameras in the United States, even though Redflex has been entirely unprofitable since 2014, when the Federal Bureau of Investigation revealed the firm was enmeshed in corruption in Illinois, Ohio and elsewhere in the country. The plunge in stock value that followed made Redflex an attractive target for the buy-out. Australia’s federal court has now signed off on the deal.