Constellation Software Inc.
TSX : CSU

Constellation Software Inc.

September 01, 2009 07:55 ET

Constellation Reaches Agreement to Acquire Public Transit Solutions Segment from Continental AG

TORONTO, ONTARIO--(Marketwire - Sept. 1, 2009) - Constellation Software Inc. ("Constellation") (TSX:CSU) today announced that its wholly-owned subsidiary Trapeze Software Inc. ("Trapeze"), has entered into an asset purchase agreement, for the Public Transit (PT) Solutions business of Continental Automotive AG ("Continental"). PT is a leading global provider of solutions for public urban passenger transport. The division develops, produces and integrates intelligent transportation systems (ITS) including operation control systems, on-board computers, and passenger information displays.

The transaction is expected to close on September 30, 2009 subject to satisfaction of certain conditions typical in a transaction of this nature. PT's Net Revenue (i.e. revenue less third party costs) generated from servicing and supporting existing clients was approximately US$25 million for the twelve months ended December 31, 2008.

Georg Sistermanns, Vice President Business Unit Commercial Vehicles and Aftermarket Controller, Continental AG commented: "The Public Transit Solutions business has a strong history of technology and market leadership, providing intelligent transportation systems for public transit. This acquisition by Constellation represents a great opportunity for the PT business to become part of an organization that has historically invested in the public transit sector."

Pending the successful closing of the transaction, the PT division will be renamed Trapeze ITS and Dr. Markus A. Zoller, the current CEO of Continental Automotive Switzerland AG and of the global Public Transit Solutions business, will leave to pursue new challenges.

Zoller commented, "I personally initiated the search for a home outside Continental where public transit could be a core business. I see fertile ground for the PT division's future in the Public Transit business operating as Trapeze ITS."

As a separate operating group of Trapeze Software Inc., Trapeze ITS' main office will be located in Neuhausen, Switzerland with other offices across Europe including United Kingdom, Germany and Poland. Their North American operations will be headquartered in Cedar Rapids, Iowa.

With more than 20 years in the public transport business, Hans-Peter Schar will be appointed Managing Director of Trapeze ITS. Prior to joining Trapeze ITS, Schar was the Chief Executive Officer of VBZ Verkehrsbetriebe Zurich - the second largest public transport operator in Switzerland with a daily transport capacity of more than 900,000 people. At VBZ, Schar was responsible for the company's operations and corporate strategy and oversaw 2,400 employees with an annual turnover of 430 million Swiss francs.

Prior to VBZ, Schar spent 8 years with Siemens TTS (Switzerland) as Chief Executive Officer before it was sold to Continental AG. In addition, he has held executive positions with Hani-Prolectron AG and Softadweis AG.

Commented Schar: "Trapeze ITS looks forward to serving PT's customers. We will conduct a thorough examination of the business and will engage employees in this process. We are committed to ensuring the long-term success of this organization and feel strongly that Trapeze's experience in the public transit sector will be of significant assistance."

About Constellation

Constellation's common shares are listed on the Toronto Stock Exchange under the symbol "CSU". Constellation Software is an international provider of market leading software and services to a number of industries across both the public and private sectors. Constellation acquires, manages and builds vertical market software businesses that provide mission-critical software solutions to address the specific needs of its customers in those industries.

About Trapeze Software

Trapeze provides some of the most advanced software, intelligent transportation systems (ITS) and mobile technologies in the passenger transportation industry. Hundreds of government and commercial organizations across North America, Europe and Asia Pacific have turned to Trapeze to realize efficiencies, enhance the quality and scope of their services, and safely transport more people with less cost. For further information on Trapeze Software Inc., please visit http://www.trapezegroup.com, or call 905-629-5297.

About Continental - Public Transit Solutions

Continental - Public Transit Solutions is a leading global provider of solutions for public urban passenger transport. The company offers public transport authorities extensive operating and information systems which enhance punctuality, reduce travel times, increase the precision of connections, and provide dynamic passenger information. Internationally present, the company develops, produces, and integrates high-quality operation control systems, on-board computers, passenger information displays, and customized services in close cooperation with its customers. The company operates branch offices in Germany, the United Kingdom, Poland, and the U.S. and has some 500 employees. Continental Automotive Switzerland AG is a member of the Continental Group, a leading global vendor to the automotive industry. More information on the company can be found at http://www.public-transit-solutions.com.

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