Cubic and Moovit jointly deliver mobile experiences for public transportation riders

Cubic Transportation Systems (CTS), a business division of Cubic Corp., and Moovit, a Mobility-as-a-Service (MaaS) solutions company and provider of urban mobility application, have signed on Thursday a definitive agreement to co-develop next-generation mobile solutions for public transit agencies. 

The partnership will enable Cubic and Moovit to integrate Moovit’s MaaS APIs with Cubic’s Mobile Suite to offer an advanced traveler experience based on Moovit’s multimodal trip planning and Cubic’s mobile payment and ticketing capabilities.

Under the partnership, Cubic will integrate Moovit’s rich MaaS APIs with Cubic’s Traveler App to include service alerts, nearby transit service lines, multimodal trip planning and real-time arrival information. The combined solution enables agencies to offer travelers an ideal journey experience. 

Underpinning this definitive agreement, Cubic and Moovit have signed a broader strategic agreement to jointly lay the groundwork for further exploration and collaboration intending to bring additional MaaS offerings to public transit agencies around the world.

“Cubic and Moovit share similar visions of the future of MaaS. Our technologies and abilities are complementary. This partnership is just the beginning of an alignment to serve the interest and operations of our customers – the public transit agencies,” said Bradley H. Feldmann, chairman, president and chief executive officer of Cubic Corporation. “The integration of Moovit’s multimodal journey planning into Cubic’s industry-leading mobile ticketing and payment offering in the Traveler Application from our Mobile Suite will offer a one-of-a-kind platform with a seamless, highly differentiated user experience.”

“Moovit’s mission is to simplify urban mobility, and since 2012 we have worked with thousands of transit agencies across 3,000 cities to make that a reality,” said Nir Erez, co-founder and chief executive officer of Moovit. “Now, together with Cubic’s global footprint, we can advance the capabilities of public transit agencies and empower them with our rich transit data and world-leading multimodal journey planner, coupled with Cubic’s powerful mobile ticketing, to provide urban mobility users with a true MaaS experience. Riders will be able to plan journeys and pay for them too, from the ease of a single platform. We look forward to continuing to work with Cubic to reach our shared goals.”

Cubic also announced earlier this week completion of the acquisitions of Delerrok, provider of a cloud-hosted, multi-agency fare collection platform for small- to mid-sized transit operators, and PIXIA, provider of high performance, cloud-based solutions to manage and access massive amounts of imagery data. 

Cubic acquired the remaining 82.5 percent of Delerrok’s outstanding equity for $36.4 million. In prior fiscal years, Cubic paid $6.5 million to purchase the initial 17.5 percent of Delerrok’s outstanding equity. The transaction is expected to be neutral to Adjusted EPS by fiscal year 2021 and accretive beginning fiscal year 2022. Additionally, Cubic acquired the remaining 80 percent of the outstanding equity of PIXIA for $200 million. 

Cubic had paid $50 million to purchase the initial 20 percent of the outstanding capital stock of PIXIA, representing a multiple of less than 11 times on full calendar year 2020 Adjusted EBITDA. 

As announced on Nov. 20, 2019, the combined transactions are included in our guidance for fiscal year 2020 and are expected to contribute approximately $40 million in Sales, $15 million of Adjusted EBITDA and add approximately $0.20 to Adjusted EPS for fiscal year 2020.

Cubic leverages Delerrok’s TouchPass platform in combination with its Transit-Management-as-a-Service (TMaaS) platform to deliver a comprehensive set of payment, mobile and real-time information solutions at an affordable price. PIXIA enhances Cubic’s Command and Control, Intelligence, Surveillance and Reconnaissance (C2ISR) digital platform and further enables real-time, cloud strategy to provide information to the edge of the battlefield.

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