Federal Signal to sell technology business to 3M for $110 million

Reuters News
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Posted: Jun 21, 2012 7:58 AM
Federal Signal to sell technology business to 3M for $110 million
(Reuters) - Safety and transportation systems maker Federal Signal Corp said it would sell its technologies business to 3M Co for $110 million in cash, primarily to reduce debt.Federal Signal had a total outstanding debt of $235.6 million as of March 2012.The technology business, known as FSTech, contributes about 13 percent of Federal Signal's total revenue. Revenue at the business was $28.5 million for the first quarter of 2012.FSTech develops hardware and software for applications used in electronic tolling, parking and access control, and electronic vehicle registration.Oak Brook, Illinois-based Federal Signal said it expects to close the deal in the second half of 2012.Jefferies & Co Inc advised Federal Signal on the deal.Federal Signal shares closed at $4.74 on Wednesday on the New York Stock Exchange. 3M shares closed at $87.54.(Reporting by Bijoy Koyitty in Bangalore; Editing by Supriya Kurane)