FAQ's - Federal Signal Technologies the new ITS group from Federal Signal Corporation

Which companies/units make up the new company within Federal Signals Group?

The new group of 'Federal Signal Technologies' (FST) comprises of; Idris (DCS), Sirit, VESystems, PIPS Technology (UK & USA) and Federal Automatic Parking Division (FAPD).

Why did Federal buy DCS, Sirit and VESystems in particular, and combine them with PIPS Technology and FAPD?

All of the individual units are the best in class and fit well together – hence the reason they were chosen. By combining these technologies together under one company, Federal Signal is creating a superior technology platform and service offering, while providing users a choice of custom, more complete, and fully integrated solutions.

What is the purpose of FST? What does Federal Signal seek to achieve by creating such a company in this market sector?

The combination of VESystems' industry experience in complete system operations, Sirit's RFID applications linked with Idris' detection and classification capabilities, the PIPS ALPR technology and FAPD's significant strength in the parking environment, immediately establishes Federal Signal as a leader in the ITS market.

This new division will develop advanced customised solutions from the synergy of technologies offered by each of the units. They have a proven record of success in jointly delivering superior technology-based client solutions. The group will be committed to investment in research and development to maintain these reputations for technical excellence at the same time as continuing to meet current market demands.

What difference will it make to the 5 units being one company, rather than continuing to operate individually? What can the 5 units gain by being part of FST?

Initially, the units forming FST will operate much as before, focusing on their specific brand, product ranges and customers. However, the units will increasingly work together to create new product and system offerings building on the synergies which exist between products and teams. The units will gain access to greater R&D funding, wider skill sets and opportunities to new markets and customers.

How will the relationship change – if at all – between existing customers and the individual units? For example, will DCS' ITPs maintain the same contractual rights and pricing as other FS units?

It is really ‘business as usual - plus’. Each unit has built up a loyal customer user base and will continue to offer the level of support, service and motivation the industry expects. The purchase and distribution routes for each unit and associated products will continue on the same contractual basis. The 'plus' will be access and opportunities for customers to additional technology, resources, products and solutions via established routes and relationships.

Will FST compete with any existing customers of the units?

No, FST is now one company and working together with its units to be a united leader in the ITS sector. Existing customers will carry on dealing with the unit they have always dealt with.

What will the customer gain by the units working as one company group rather than individually?

Currently, customers enjoy specialist products with focused support from each of the units, and this will continue. In addition, customers will progressively see new products emerging intended to improve performance, enhance capability and reduce implementation risks. Further, customers will gain easier access to the complete range of products within FST.

FST will offer choice and interoperability - the 'open architecture' approach of the group will increase customer choice and interoperability due to the modular format of the technologies.

What is the branding for the new group, and why?

The new name for the group will be ‘Federal Signal Technologies’ (FST) and this branding unifies the new companies units under the Federal Signal banner, creating a simple, effective and memorable name. FST will be a provider of Intelligent Transportation Systems and Supply Chain Solutions.

Will all decisions for individual units have to go through FST? Will answers be delayed time-wise to any questions clients may have?

Becoming part of a new group will bring new internal controls and processes – as with any company. However, FST is keen to minimise the impact on its constituent member units and to allow freedom to respond promptly to their customer's needs. Indeed, customers should benefit from easier access to other group units.

Where does the group see itself in 5 years time?

The group is keen to build on the achievements of its member units and become a major player in the ITS sector. This means capitalising on synergies between products, creation of wider system capabilities ('one stop shop') and greater access for all products into new markets and geographies. This in turn, opening new revenue and market opportunities for existing customers who may currently use one product offering but, by including another from FST, could extend their own solution into new regions or market sectors.