Cubic Corporation

Cubic Corporation is a global private transportation and defense corporation. It operates two business segments: Cubic Transportation Systems (CTS) and Cubic Mission and Performance Solutions (CMPS).
History
Cubic Corporation was founded in 1949 by Walter J. Zable as an electronics company in San Diego, California, and began operations in 1951. Zable devised the company name as he wanted the name to reflect both engineering and precision. Its first product was a calorimetric wattmeter, a device used for measuring microwave output. It became a publicly-traded company in 1959.
In 1969, the company acquired United States Elevator Corporation, a maker of freight and passenger elevators.
In early September 1984, Cubic moved its corporate domicile into Delaware General Corporation Law. The move was completed on June 11, 1985.
Cubic employs 6,200 people globally. Stevan Slijepcevic was named president and chief executive officer of Cubic Corporation in January 2022.
In May 2021, Cubic announced the completion of its sale to the private equity firms Veritas Capital and Elliott Management, turning the publicly traded New York Stock Exchange company into a privately held company.
In June 2023 Cubic wrote a letter to the Australian Victorian state premier, requesting a review of the tender process which awarded the state upgrade of its Myki system to its competitor Conduent. In its letter Cubic claimed its submitted bid was $100,000 less than the winning a bid (a 0.005% difference in the overall $1.7 billion cost of the winning bid over 15 years), and that procurement officers from the state government had not visited its operational sites. Cubic preferences to install its own ticket readers was reported as a reason to consider its bid more expensive.
Company divisions
Cubic's operating segments include:
Cubic Mission and Performance Solutions provides networked command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) capabilities for defense, intelligence, security and commercial missions, as well as realistic combat training systems, secure communications, operations, maintenance, technical and other support services for the U.S. and allied nations.
Cubic Defence New Zealand Ltd (previously OSCMAR International Limited) is a manufacturer of training and simulations systems for military forces worldwide. It is based in Auckland, New Zealand, and owned by Cubic Corporation.
Cubic Transportation Systems designs, integrates, and provides outsourced business process and information technology services for automated fare collection systems for public transit operations. Additionally, this segment provides the fare payment infrastructure, including gates, ticket machines and smart card readers, and the back end or central system for processing and reporting revenue and other data. Services include customer support, software support, and operations services. CTS is the world's largest operator of public transport fare collection services. Founded May 5, 1972.
Products and services
Cubic Transportation Systems provides the following products and services:
Ticket machines
Smartcard readers
Fare-collection gates
Full-service mobility platform
Umo is a multi-modal platform that connects public and private mobility systems to optimize public transportation operations.
Umo keeps riders moving efficiently by offering multi-modal journey planning, contactless payments, real-time travel information, and loyalty rewards through the Umo Mobility App.
Umo also partners with media agencies on advertising and promotion.
Revenue management back office and associated services
Card-based
Account-based: New York’s OMNY OMNY, Chicago's Ventra system(used by CTA, Pace and Metra), Brisbane’s GO card system, and London Oyster Cards are some of Cubic's account-based products.
Mobile: Cubic has deployed mobile applications in multiple locations in the United States and was the first to launch transit cards within the mobile wallet.
Transit customer support
Management services to transit agencies
Real-time passenger information
Operational planning assistance
Traffic management
Customers in the UK include the Highways Agency, Transport for London, and Transport Scotland. Cubic also works for Transport for New South Wales in Australia through the Intelligent Congestion Management Program (ICMP), which focuses on enhanced monitoring and management of the area's road network.
Predictive analytics
Tolling
Cubic created an integrated payment processing, customer service, and financial management platform for the tolling industry.
Operational IT services
Asset management services
Services include field maintenance, device support, depot repair and part supply, spares and obsolescence, and cash collection.
GRIDSMART
In 2019, CTS acquired GRIDSMART for approximately $87 million in cash.
GRIDSMART specializes in video detection at the intersection using advanced image processing, computer vision modeling and machine learning along with a single camera – providing data for optimizing the flow of people, bicycles, and traffic through intersections.
GRIDSMART has approximately 12,000 operating intersections.
Trafficware
In 2018, CTS acquired Advanced Traffic Solutions Inc. ("Trafficware") for approximately $235.7 million in cash.
Projects
Cubic Transportation Systems has delivered over 400 projects in 40 markets on five continents. Cubic first implemented mobile ticketing technology in 2006 and produces multiple mobile fare collection options, including mobile ticketing through barcoding, NFC tools, contact and contactless smartcard payments, and traditional automated fare collection systems. The Umo Mobility Platform was launched in January 2021. Cubic Transportation Systems manages around 70% of the global market for smart transit cards. Cubic processes more than 24 billion transactions a year.
In 2017, Cubic was chosen to implement the AFC 2.0 project by the Massachusetts Bay Transportation Authority (MBTA) to update the MBTA's fare collection systems. This project was budgeted for $723 million, with a planned completion date of May 2021. As of May 2021, the cost of the project (now called "Fare Transformation") had risen to $935 million, with an updated completion date of 2024. In February 2023, the MBTA announced that it considered the project "unlikely to meet the current 2024 timeline for full implementation".
On October 21, 2022, it was announced that Waka Kotahi/New Zealand Transport Agency had signed a contract with Cubic for the development of their National Ticketing Solution. The National Ticketing Solution will allow the use of a single fare card on public transport across the whole of New Zealand.
Other units
DTECH Labs provides communications products for military, government, first responders, and civilian customers.
TeraLogics is a provider of real-time Full Motion Video Processing Exploitation and Dissemination for the Department of Defense, the intelligence community, and commercial customers based in Ashburn, Virginia.
GATR Technologies manufactures portable, inflatable SATCOM and C4ISR terminals for tactical communications in harsh and forward or remote deployed environments.
Vocality provides embedded technology that unifies communication platforms enabling its business, government, and military customers to communicate securely using legacy systems with the latest wireless and cellular networks.
PIXIA Corp. is an imagery management company.
References
Companies formerly listed on the New York Stock Exchange
Manufacturing companies based in San Diego
Manufacturing companies established in 1951
Defense companies of the United States
American companies established in 1951
2021 mergers and acquisitions
Private equity portfolio companies