PROVIDENCE — Nestor Traffic Systems, an affiliate of Nestor, Inc., said it has received $6 million in financing from business processor EDS to support installation of its CrossingGuard product.
Nestor first established a relationship with Plano, Texas-based EDS in April of this year. According to Nestor spokeswoman Carolyn Beaudry, EDS, which has offices in Cranston, provides back-end services to complement the CrossingGuard’s primary function, which is to detect red light violations and record a full video sequence of the event.
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The $6 million, said Beaudry, will support the many upfront costs associated with the initial setup of CrossingGuard, such as the installation of cameras, polls and computer systems. Nestor Traffic Systems collects revenues from the municipalities it contracts with based on a portion of traffic ticket fees assessed against red light violators CrossingGuard detects. Once local traffic enforcement approves a citation recorded by CrossingGuard, EDS is forwarded the citation for processing, Beaudry said.
The financing from EDS is the second substantial financial commitment Nestor Traffic Systems secured this year. In January, the affiliate said it signed an $8 million equity financing agreement with a group of independent investors.
According to a company statement, Nestor Traffic Systems has contracts in place for CrossingGuard enforcement at more than 50 intersection approaches, and negotiations are underway with “several new customers.” The EDS financing will support equipment leasing for the installation of more than 100 CrossingGuard-equipped intersection approaches, the statement said.
