Rekor Systems, a global AI technology company based in Columbia, has entered into a Letter of Intent to acquire Southern Traffic Services. STS is a recognized leader in traffic engineering and advanced traffic data collection technologies across public and private agencies.
Under the terms of the LOI, Rekor will acquire STS, of Gulf Breeze, Fla., for up to $14.5 million, including earnouts, the amount of which will be based on the achievement of certain performance metrics.
The acquisition will be funded through a combination of cash, stock and seller notes. The closing of the transaction is subject to customary conditions and is expected to occur within the next 90 days.
“Roadway technology across the U.S. is notoriously outdated and inefficient, making it more difficult for government agencies to manage today’s complex infrastructure environment,” saidMark Knowles, STS co-founder. “Departments of transportation are seeing the benefits of next generation AI enabled insights and analysis. Joining Rekor will allow us to give the power of AI to our existing and potential customers as they look to better serve their communities through better, faster, and more efficient traffic data collection and analysis.”