Rekor Systems makes $330 mln cash-and-stock offer for Iteris - sources

Rekor Systems

01/03/2021 04:32

By Greg Roumeliotis
    Feb 28 (Reuters) - U.S. license plate recognition software
vendor Rekor Systems Inc  REKR.O  made a non-binding $330
million cash-and-stock offer to acquire traffic camera provider
Iteris Inc  ITI.O , people familiar with the matter said on
Sunday. 
    The move came following a fivefold increase in the value of
Rekor's shares in the last three months, which emboldened it to
sell some of its stock to raise money for acquisitions that
would broaden its portfolio in the mobility sector.
    Iteris rejected Rekor's offer last week without offering it
a reason, the sources said. Iteris shareholders stood to receive
$1.39 in cash and between 0.399 and 0.420 Rekor shares for each
of their shares were the offer to have been firmed up following
due diligence, the sources added. Iteris shareholders would own
close to a third of the combined company under these terms.
    The sources requested anonymity because the acquisition
approach was confidential. Representatives for Rekor and Iteris
did not immediately respond to requests for comment.
    Based in Columbia, Maryland, Rekor makes
artificial-technology-based vehicle recognition software
systems. It has been transitioning into a software-as-a-service
business model that generates subscription revenue.
    Based in Santa Ana, California, Iteris makes video and radar
detection equipment used in highways. It has been expanding its
software platform to offer comprehensive solutions to state and
federal transportation agencies.

 (Reporting by Greg Roumeliotis in New York; Editing by
Jacqueline Wong)
 ((Greg.Roumeliotis@thomsonreuters.com; +1 646 223 6022; Reuters
Messaging: greg.roumeliotis.thomsonreuters.com@reuters.net))