One of the USA’s leading suppliers of applied informatics systems for the transportation industry, Iteris Inc., has announced that it has entered into a definitive agreement to acquire Albeck Gerken Inc., a Florida-based traffic operations and engineering services provider.
Under the terms of the agreement, Iteris will acquire Albeck Gerken for a total purchase price of US$10.7m to be paid in cash and stock, with the ability for key principals to realize an additional US$2.3m in other incentives over three years from the date of close. The proposed acquisition is expected to close on July 2. For the fiscal year ending December 31, 2018, Albeck Gerken’s audited GAAP revenue was US$8.1m and EBITDA was US$2.0m. Headquartered in Tampa (Florida), and with offices in Orlando (Florida), Virginia Beach (Virginia) and Chadds Ford (Pennsylvania), Albeck Gerken has developed a reputation for exceptional traffic operations engineering and consulting expertise, particularly in Florida, which is one of the most robust markets in the USA for smart transportation, with the Florida Department of Transportation (FDOT) having committed US$49.9bn of investment over a five-year period.
The company operates its own state-of-the-art traffic management facility, including a traffic management center (TMC), traffic operations lab and training center, from its headquarters in Tampa. Albeck Gerken bundles these captive assets with its traffic operations engineering services to yield a highly leveraged operating model. The company also possesses significant capabilities in transportation systems management and operations, and integration and managed services. In addition to the Florida market, Albeck Gerken services cities and states in the USA’s Midwest and Mid-Atlantic regions. As all of these regional markets represent established or strategic geographies for Iteris, the combination of the two entities will result in improved geographic density for Iteris. The combined total value of Albeck Gerken’s current contracts across all geographic markets is approximately US$16m.
Florida is seen as a key strategic geography for Iteris, with recent contract awards including: a connected and automated vehicle (CAV) technologies assessment project with the Lee County Board of County Commissioners; a five-year regional traffic management center (RTMC) operations and staffing engagement in Tampa with FDOT District 7; and a smart transportation initiative using cloud-based intersection data analytics services with the City of Gainesville, in conjunction with the University of Florida.
“We look forward to integrating Albeck Gerken into the Iteris family,” said Joe Bergera, president and CEO of Iteris. “The combination will expand our strategic footprint in Florida, one of the nation’s most robust smart transportation markets, as well as enhance our existing position in the Mid-Atlantic and Midwest markets. Additionally, we intend to utilize Albeck Gerken’s world-class traffic management facility to advance our Intersection-as-a-Service offering, which is a software-enabled managed service that we offer to agencies nationwide.”
Jeff Gerken, president of Albeck Gerken, commented, “We are thrilled with the opportunity to join Iteris’ industry-leading intelligent transportation systems team under the proposed acquisition agreement. As part of the Iteris family, our extensive traffic operations engineering and consulting experience will continue to improve the lives of citizens and travelers in Florida and across the nation.”