...Good free operating cash flow generation. Relatively small scale relative to rating peers. Leading market position in the U.S. traffic safety and rental car market. Significant customer concentration. Acquisitive growth strategy. Recent acquisitions strengthen business and geographic diversification, though margins remain under pressure. The acquisitions of RedFlex and T2 increase scale and cross-selling opportunities, supporting our expectation for 25%-30% of revenue growth in 2022. Moreover, this will moderately reduce customer concentration with New York City and the top three Rent-A-Car (RAC) customers. However, public filings indicate RedFlex has faced profitability pressures in recent years stemming from significant investments required to manage its international, albeit small, scale. T2 may also remain a dilutive acquisition until cross-selling opportunities for municipalities come to fruition. We recognize T2 will expand its breadth of offerings to increasing contribution from...
