Cubic acquires ERG assets in the US
The agreement initially will cover servicing the TransLink contract in the San Francisco Bay Area; and eventually will include the other transit agencies currently using Vix ERG MASS systems.
As part of this purchase, Cubic has acquired a fully functioning comprehensive service operation in Concord, Calif., designed specifically to support public transport authorities with complete solutions for smart card distribution and call center operations. Approximately 125 ERG employees have joined Cubic from ERG's US operations and engineering operations in Perth, Australia.
At the end of 2008, ERG agreed to a restructure that will strip the smart-card operator of its assets in forming Vix ERG and leave the NSW Government with a corporate shell as the target of a legal claim of AUD 89 million (EUR 44 million) over the failed TCard project (cf. Smart Insights #08-48).