Infrastructure, construction and building products group Hill & Smith has bought the UK's leading supplier of traffic counting and classifying equipment.
Privately owned Counters & Accessories, based in Milton Keynes, has been acquired from its founder shareholder, Geoffrey Kent, in a £5 million cash deal.
Mr Kent is remaining with the company as a consultant.
Counters & Accessories has annual sales of around £3.5 million and reported pretax profits of £1.4 million in the year ended September 30.
The business, which manufactures and supplies data collection equipment for use by traffic engineers, has 19 employees, all of whom are set to remain.
It uses advanced technology to produce battery and solar powered traffic counters, which can record the flow of up to eight lanes of traffic.
The deal is the latest in a string of acquisitions by the West Midlands-based group.
Hill & Smith's wider product range for the transport infrastructure market includes safety barriers and street lighting columns.
Counters & Accessories' products have been tailored for use in a variety of situations, with one even recording the flow of bicycles.
The business also manufactures the Speed Indication Display (SID), designed for use by organisations involved in road safety.
A portable device, SID tracks drivers from 100 metres away and beams up their speed on a roadside board. The board displays either a smiling or sad face, depending on the speed, to influence driver behaviour.
Covert traffic monitoring is possible with the use of the Radar Recorder, which uses a state of the art planar antenna to measure the speed of two lanes of traffic travelling in opposite directions.
Chief executive David Grove said: "One reason for our interest in Counters & Accessories was that it provides the complete package, from design and manufacture to supply, installation and maintenance.
"The real gain for the group though comes from the new marketing opportunities that will arise from the close fit of Counters & Accessories with our other businesses."
Hill & Smith announced record pretax profits for the six months ended June 30, 2005, of £8.5 million, 36.6 per cent ahead of the same period in the previous year.
Annual results are due to be announced on March 8.