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Iteris to purchase Albeck
Posted on Monday, 17 June 2019 10:50
Iteris is buying US-based traffic operations service provider Albeck Gerken for USD 13.00 million in cash and stock.
The consideration includes an earnout of USD 2.30 million to be paid over three years following the completion of the deal, which is due to close on 2nd of July.
Based in Tampa, Florida, Albeck is a privately-held transportation engineering firm specialising in transportation systems management and operations.
It has offices in Orlando, Virginia Beach and Chadds Ford, as well as contracts totalling USD 16.00 million across its geographic markets.
The target’s services include traffic operations engineering, which utilises signal timing optimisation software tools and traffic data collection, among others, to prevent gridlocks and ensure the safe movement of vehicles.
Albeck is located in one of the strongest markets for smart transportation in the US, which has seen the Florida Department of Transportation invest USD 49.90 billion over a five-year period.
For the financial year ended 31st December 2018, the target posted generally accepted accounting principles revenue of USD 8.10 million and earnings before interest, taxes, depreciation and amortisation of USD 2.00 million.
Through the deal, Iteris will expand its geographic presence by entering the Midwest and mid-Atlantic markets.
As a result, the transaction will add to the buyer’s existing operations in Florida, which include a connected and automated vehicle technologies project with the Lee County Board of County Commissioners.
Joe Bergera, chief executive of the acquiror, said: “Additionally, we intend to utilise Albeck’s world-class traffic management facility to advance our Iteris intersection-as-a-service offering, which is a software-enabled managed service that Iteris offers nationwide.”
Headquartered in California, the purchaser claims to be the global leader in applied informatics for the transportation and agriculture industries.
The group provides analytics in real-time for governments and local agencies worldwide to help ready roadways for connected and autonomous vehicles and ensure the safe movement of traffic across cities and states.
Iteris booked revenue of USD 99.12 million for the fiscal year ended 31st March 2019, down from USD 103.73 million in the preceding 12 months.
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