Econolite Teams Up With PTV of Germany

A group of European businesses have taken a majority stake in Anaheim traffic management specialist Econolite.

PTV Group, a Karlsruhe, Germany-based software company for traffic simulation, planning and real-time management, is part of a new holding company with Econolite that’s backed by private equity firm Bridgepoint Group PLC of the U.K. and Porsche SE of Germany.

Bridgepoint and Porsche SE will acquire a majority stake in Econolite as part of the deal.

PTV Group has “significant market leadership in transportation planning and simulation worldwide,” said Econolite President and COO Abbas Mohaddes.

“We felt that to join forces would be a tremendous synergy for us,” Mohaddes told the Business Journal on March 15.

He said he expects the deal to close within 45 to 60 days. No financial terms were disclosed, and the combination is subject to regulatory approvals.

Under the new arrangement, Mohaddes will be chief executive of Econolite Americas, while the company’s current CEO, Mike Doyle, will be chairman of Econolite Americas focusing on strategic activities.

Stoplight Giant

Econolite has about 900 employees with offices around the country, as well as Canada and North America. About 95% of the employees are in North America.

It is among the largest providers of stoplights in the U.S. The company’s central traffic control software is used by more than 400 agencies across North America in more than 150,000 traffic controllers deployed at over 57,000 intersections.

Econolite and PTV develop and deploy software, computer systems and sensors to help keep traffic moving with better stoplight timing strategies, using predictive algorithms, artificial intelligence and machine learning expertise.

They integrate technology and cutting-edge communications to make cars and trucks move more smoothly while easing road and highway congestion, especially in urban areas.

“Through the cooperation with PTV, we will be able to offer our customers globally even more innovative, efficient, and sustainable products and services in the field of smart mobility,” according to Mohaddes, who previously served as CEO at Santa Ana-based traffic management specialists Iteris for eight years.

Econolite Majority

Mohaddes will also serve on the management board of the new holding company, according to the announcement.

There will be a separate CEO for Europe, Asia, Pacific and the Middle East.

“We are divvying it up basically,” Mohaddes told the Business Journal. “We have basically two CEOs.”

For the time being “we are planning to operate under our own brands” but “in time we will develop a common name as we go forward.”

Bridgepoint acquired a majority stake in PTV in February, while Porsche SE holds a minority stake in PTV.

Accelerate Growth

Mohaddes is “extremely happy” about the planned new collaboration.

“Together, Econolite and PTV create a group with a leading market position that now has a presence in over 120 countries and approximately 2,000 employees,” the companies said.