VANCOUVER - Webtech Wireless Inc. (TSX:WEW) announced Thursday it has closed the sale of its NextBus subsidiary to a division of California-based Cubic Corp. (NYSE:CUB) for $20.75 million in cash.
NextBus, headquartered in Emeryville, Calif., provides passenger information systems to transit agency customers in the United States and Canada. The software gives passengers accurate, real-time arrival information about buses, subways and trains.
Its products also offer travellers a host of other options, including a GPS-enabled mobile website for smartphones that recognizes the nearest stops in proximity order as well as real-time tools that enable transit operators to manage their systems.
Under the terms of the agreement, Cubic Transportation Systems will acquire all contracts, assets and rights related to the NextBus division.
The agreement also includes a provision under which Webtech Wireless will provide ongoing hardware and other services to NextBus.
"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 Andrew Morden, Webtech's chief financial officer.
"Today's announcement demonstrates that we have delivered on the value we saw."
On the Toronto Stock Exchange, shares in Burnaby, B.C.-based Webtech were up 3.5 cents, or 13.73 per cent, at 29 cents on volume of almost 800,000 shares at mid-afternoon Thursday.