Platinum Equity, a private equity firm based in Los Angeles, announced plans for the acquisition of American Traffic Solutions (ATS), a traffic camera company.

Platinum Equity had raised around $6.5 billion for acquisitions as of March and disclosed an additional $11 billion in assets.

However, James Tuton, ATS chairman and founder, said that the business had not always been as successful as it is now.

Tuton started the nation’s first ever traffic photo-enforcement program in 1987 when Paradise Valley wanted to curb the speeding drivers who were cutting down Lincoln Drive from Scottsdale to Phoenix by letting Tuton install a traffic camera along the route.

Traffic cameras did not gain very rapid acceptance right away and by 1999 Tuton sold the business to global company, Redflex, for several years before deciding to buy the company back. 

As of 2010, The Arizona Republic reported that ATS company representatives reported that the annual revenue was over $150 million, though the exact figures today have not been released to the public because the company is privately held. 

Nonetheless, with 3,800 cameras nationwide, significantly large fleet-services, rental services, and safety units, the company has definitely experienced quite a bit of growth over the last few years.

Platinum Equity partner Jacob Kotzubei stated that the “financial and operational resources” of Platinum Equity will bring a great benefit to ATS, which is already a “strong company with great leadership and vision, and a workforce dedicated to providing their customers with superior service”.

Charles Territo, the vice-president of communications at ATS said that they will neither relocate from their Mesa location, nor replace their current President and Chief Operating Officer, David Roberts, and his management team during the acquisition. 

Both the safety units and the fleet services at ATS contribute to the “very diversified business” added Territo.