Based in Vancouver, B.C., SmarTire develops and markets wireless sensing and control systems and advanced tire-monitoring solutions for commercial vehicles.
The transaction will immediately incorporate the company’s assets to become a part of the electronics business unit of Bendix. The move will complement Bendix safety technologies such as the Bendix ESP Electronic Stability Program and Bendix Adaptive Cruise Control.
Proceeds from the sale closing will be held in escrow subject to SmarTire obtaining consent of its shareholders at a meeting to be held in March 2009.
SmarTire and SmartWave technologies will enhance the evolving set of Bendix chassis-based safety components, the company says, adding that it believes tire pressure monitoring systems — already mandatory on passenger vehicles in North America — are one of the technologies to help achieve comprehensive commercial vehicle advanced safety technology.
Tire pressure monitoring systems are currently being reviewed by the National Highway Traffic Safety Administration and the Federal Motor Carrier Safety Administration as part of an investigation into the mitigation of tire failure in commercial vehicles. In the European Union, a current initiative aims to ensure a mandate requiring TPMS technology in passenger vehicles.