Rekor Systems makes $330 mln cash-and-stock offer for Iteris - sources

By Greg Roumeliotis

Feb 28 (Reuters) - U.S. license plate recognition software vendor Rekor Systems Inc made a non-binding $330 million cash-and-stock offer to acquire traffic camera provider Iteris Inc, people familiar with the matter said on Sunday.

The move came following a fivefold increase in the value of Rekor's shares in the last three months, which emboldened it to sell some of its stock to raise money for acquisitions that would broaden its portfolio in the mobility sector.

Iteris rejected Rekor's offer last week without offering it a reason, the sources said. Iteris shareholders stood to receive $1.39 in cash and between 0.399 and 0.420 Rekor shares for each of their shares were the offer to have been firmed up following due diligence, the sources added. Iteris shareholders would own close to a third of the combined company under these terms.

The sources requested anonymity because the acquisition approach was confidential. Representatives for Rekor and Iteris did not immediately respond to requests for comment.

Based in Columbia, Maryland, Rekor makes artificial-technology-based vehicle recognition software systems. It has been transitioning into a software-as-a-service business model that generates subscription revenue.

Based in Santa Ana, California, Iteris makes video and radar detection equipment used in highways. It has been expanding its software platform to offer comprehensive solutions to state and federal transportation agencies. (Reporting by Greg Roumeliotis in New York; Editing by Jacqueline Wong)