Business
Rekor Systems Completes Acquisition of Southern Traffic Services (STS)
Combined company now offers the broadest set of AI- and data-driven solutions for urban mobility, traffic management and public safetyAcquisition expands
About this update from Rekor Systems, Inc.
[{"type":"text","content":"Combined company now offers the broadest set of AI- and data-driven solutions for urban mobility, traffic management and public safetyAcquisition expands Rekor's geographic footprint and public sector customer baseCOLUMBIA, MD / ACCESSWIRE / June 21, 2022 / Rekor Systems, Inc. (NASDAQ:REKR) (\"Rekor\" or the \"Company\"), a global AI technology company with a mission to provide data-driven insights that build safer, smarter, and more efficient cities around the world through intelligent infrastructure, announced that it has closed its acquisition of Southern Traffic Services (\"STS\"). The acquisition is valued at up to $14.5 million, including earnouts, the final amount of which will be based on the achievement of certain performance metrics. STS will operate as a business unit within Rekor comprised of its existing team of approximately 100 employees located in offices across seven states. For fiscal year 2022, STS is expected to generate $15 million of revenue, of which 50% is recurring, and $3 million of EBITDA.The acquisition combines two complementary companies and is anticipated to accelerate Rekor's business plan and path to profitability going forward. It combines over 30 years of traffic engineering and data collection expertise from STS with Rekor's next generation artificial intelligence and machine learning technologies. Together, the combined company is uniquely positioned to become the leading provider of artificial intelligence- and machine learning-driven solutions for traffic management, urban mobility, and public safety.Founded in 1988, STS pioneered data services contracts with departments of transportation throughout the United States. In addition to traffic data collection, STS provides traffic engineering expertise that includes design, planning, and traffic study services to U.S. government and private agencies with a strong footprint in the Southeast. The team manages more than 30,000 traffic data collection sites across various states, which expands Rekor's coverage area by more than 60,000 lanes of traffic that cover hundreds of thousands of square miles across the country.\"Together, Rekor and STS can now deliver the most advanced offering of AI- and machine learning-based solutions to help the public and private sectors better manage traffic, enhance urban mobility, and increase public safety,\" said...