Brekford Corp., a Hanover, Maryland-based company that provides automated traffic safety enforcement solutions, announced that it agreed to sell an 80-percent stake in its vehicle services business for $6 million to LB&B Associates Inc., headquartered in Columbia, Maryland.
Proceeds from the sale will be used to retire all long-term debt of the company, and provide capital necessary for expansion. The transaction is expected to close by Feb. 28 and the company will sell its shares for $4 million in cash and a $2 million promissory note.
“LB&B will bring significant resources and national expansion capabilities to what is already a leading public safety solutions business,” said President and Chief Operating Officer Rod Hillman. “Brekford shareholders will benefit from a continuing minority ownership in the business as well as new growth capital for the aggressive expansion of our ATSE business in the United States and Latin America.”
Brekford’s clients include the Maryland State Police, the Florida Highway Patrol, the Pentagon, Amtrak and Baltimore County.
The company’s shares closed Monday at 10 cents and were up 0.42 percent from the previous day.
The filing can be found here.
