Federal Signal buys traffic software developer for $14.6M and up to $3.2M in deferred payments

Federal Signal buys traffic software developer

OAK BROOK, Ill. — Federal Signal Corp., which manufactures safety, signaling and communications equipment and fire rescue vehicles, said Thursday it has acquired Diamond Consulting Services Ltd.

Diamond Consulting develops software applications for the road traffic industry, such as sensors for tollbooths.

Federal Signal, which said the deal would immediately boost earnings, paid $14.6 million and has agreed to deferred payments of up to $3.2 million.

Diamond Consulting will operate as part of the Public Safety Systems business unit of Federal Signal’s Safety & Security Systems group.

Federal Signal shares ended 3 cents lower to close at $5.72.