Data specialist Rekor Systems has announced its second acquisition focused on traffic analytics in eight months.
It is to buy Southern Traffic Services (STS) in a $14.5m deal, which is expected to close in the next 90 days.
Rekor bought Waycare Technologies for $61m last year.
STS has data collection contracts with departments of transportation across the US, with 30,000 collection sites across the states, and would significantly expand Rekor's geographic footprint.
“Roadway technology across the US is notoriously outdated and inefficient, making it more difficult for government agencies to manage today’s complex infrastructure environment,” said Mark Knowles, STS co-founder.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.”
Rekor says the acquisition will increase its coverage area by more than 60,000 lanes of traffic and it expects STS to generate $15m of revenue in fiscal year 2022.
“Southern Traffic Services has specialised in traffic data collection for over 30 years, and their in-house expertise and capabilities will bring immediate benefit to Rekor’s customers,” said Rekor CEO and chairman Robert Berman.
