Manufacturer 3M agreed to acquire Federal Signal Technologies Group, a unit of Federal Signal focused on electronic tolling technologies, for $110 million.
The transaction is expected to close in the second half of 2012, the companies said.
The acquisition signals 3M’s confidence in the future of electronic tolling as a means of funding highway infrastructure, construction and maintenance.
The $3 billion electronic tolling industry is expected to grow faster than 12 percent per year, according to 3M, as government agencies adapt the technology.
Governments worldwide, and especially in Europe and North America, are increasingly deploying electronic tolling systems that speed vehicles through gates.
Although use of electronic tolling on previously un-tolled highways is controversial, replacing manned toll booths with electronic toll lanes is increasingly common.
New Jersey, for example, is trying to increase the number of drivers using the E-Z Pass tolling system.
FSTech’s product portfolio includes electronic tolling, vehicle identification, license plate recognition and toll and parking lot management systems and software.
Those systems will dovetail with traffic products developed by 3M, said John Houle, vice president and general manager of 3M’s Traffic Safety Systems division.
“Electronic tolling and parking are key adjacencies to 3M’s offering for motor vehicle systems and services,” Houle said in a statement.