Rekor Systems signs LOI to acquire Southern Traffic Services

May 16, 2022 8:00 AM ETRekor Systems, Inc. (REKR)By: Preeti Singh, SA News Editor
  • Rekor Systems (NASDAQ:REKR) has signed a letter of intent to acquire Southern Traffic Services (STS) for up to $14.5M, including earnouts.
  • The acquisition, which will be accretive to Rekor's earnings immediately upon closing, will be funded through a combination of cash, stock, and seller notes.
  • Founded in 1988, STS specializes in traffic engineering and advanced traffic data collection technologies across public and private agencies. It manages over 30,000 traffic data collection sites across various states. The business is expected to generate $15M of revenue, of which approximately 50% is recurring, and EBITDA of $3M.
  • The deal will expand Rekor's geographic footprint by adding over 60,000 lanes of additional coverage and strengthen its technology distribution opportunities in the U.S. It is expected to close within the next 90 days.

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