Brekford Corp., which sells red light and speed cameras and other systems to public agencies throughout the country, is spinning off its vehicle services business in anticipation of a merger.
Columbia-based LB&B will take an 80 percent stake in Brekford’s law enforcement "vehicle upfitting business" — installing special equipment such as skid pads — which has been concentrated in a new limited liability company called Global Public Safety LLC. LB&B is paying $4 million in cash and contributing a $2 million promissory note.
The deal is expected to close Feb. 28.
Proceeds will be used to pay off Brekford’s debt and expand its automated traffic safety products, such as its red light and speed cameras, the company said Monday in a news release.
Brekford, headquartered in Hanover, reported about $800,000 in losses in the first nine months of the year.
In December the company said it was planning to merge with a bigger company in Virginia, Keystone Solutions Corp. A sale of the vehicle services business was part of that plan, which is expected to close later this year.
LB&B Associates Inc. employs more than 1,000 people and provides logistics support, facilities management and maintenance to the U.S. military, federal agencies, state government and businesses around the world.
Brekford is known in Baltimore for taking over Baltimore’s troubled red light and speed camera program from an earlier contractor. But the program never got off the ground. The city said in 2013 it would pay to end the contract early.
nsherman@baltsun.com
Our editors found this article on this site using Google and regenerated it for our readers.
