Watson Burton advise on top US security deal

Sep 12 2007 by Iain Laing, The Journal

LAW firm Watson Burton has advised top US security technology firm Federal Signal Corporation on the £57.5m acquisition of two companies.

The Newcastle firm saw FSC through the purchase of PIPS Technology Limited of Eastleigh, Hampshire, and its sister firm PIPS Technology Inc of Knoxville, Tennessee.

FSC is expanding its security and well-being solutions worldwide for safety, signalling and communications equipment.

PIPS Technology makes automatic number plate recognition systems, and was awarded the Queen’s Award for Enterprise in 2005 for its innovative ‘spike’ automated number plate capture and analysis.

The number plate recognition systems patented by PIPS are used for city centre congestion tolling systems, law enforcement and public safety applications, and toll road networks. Market growth should easily be in the double-digit range given the infancy of the global markets for this technology.

Gillian Hall, head of corporate law at Watson Burton and corporate associate Robin Adams worked with Federal Signal Corporation on this transatlantic transaction.

Ms Hall said: “We worked simultaneously on the purchase of both British and American PIPS companies on behalf of Federal Signal. It required a tightly co-ordinated approach, which led to a successful deal completed in August. The transaction has strengthened Federal Signal’s position globally, and has immediately added value to its shares.”

Federal Signal president and chief executive officer Robert D. Welding said: “This acquisition fits tightly with our plans to significantly expand our market-leading set of public safety and security solutions for emergency managers, first responders and law enforcement agencies. PIPS has built a commanding position in the UK and other European markets, and has established a technology leadership position in the developing US market. Federal Signal is uniquely positioned to accelerate the technology deployment in the US, as municipal and homeland security initiatives will increasingly deploy licence plate recognition technology.”

Number plate recognition solutions are used in journey time measurement systems, police applications, toll enforcement, congestion charging, road user charging, parking systems, traffic monitoring and automated site security. Number plate recognition-enabled cameras are used on emergency vehicles, and at access entry and tolling points to capture licence plate details for tolling and law enforcement purposes.

Paul Henry, Federal Signal Corporation’s inside counsel, said: “Watson Burton’s quick responses and detailed knowledge helped the deal progress extremely well. Gillian Hall and her colleagues were important, valued members of our team.”