Rekor Systems, Inc. (NASDAQ: REKR) ("Rekor" or the “Company”), a global AI technology company with a mission to provide intelligent infrastructure and insights that build safer, smarter and more efficient cities around the world, has signed a definitive agreement to acquire Waycare Technologies, Ltd. ("Waycare"), a privately held company focused on optimizing traffic management systems using predictive analytics. Rekor will provide $61 million in total consideration consisting of a combination of cash and common stock. The closing of the transaction is subject to customary closing conditions and is currently anticipated to occur during the third quarter of 2021.
Founded in 2016, Waycare has been rapidly shaping the future of intelligent infrastructure by harnessing multi-source data for predictive insights. Their solution uses artificial intelligence (“AI”) to aggregate and process data from various sources to help government agencies with crash prediction, congestion detection, as well as incident management and identification. Waycare collates data from transportation agencies' existing infrastructure, which is then synthesized with additional data from mobile apps, connected vehicles, weather analysis and event management systems. AI algorithms ingest and process this information to produce actionable insights and predictions. The company’s mission is to leverage technology to benefit the public by improving roadway safety, preventing fatalities and enhancing effectiveness of the existing infrastructure.
Robert A. Berman, President and CEO, Rekor, commented, “Intelligent infrastructure is the foundation upon which smart cities are built. As we will discuss in more detail on our upcoming strategy update on September 14th, there are three key ingredients to be a best-in-class solutions provider in the emerging intelligent infrastructure industry and they are the ability to: collect accurate data via sophisticated sensors; process data via cutting-edge software; and capitalize on first mover advantages by rapidly expanding geographic reach and product offerings. We call this having real estate. With the Waycare acquisition, we are significantly strengthening our footprint and meaningfully enhancing our service offering. This acquisition accelerates access to new markets and provides us with new vendor relationships to access unique data sources.”
“Waycare is a rare asset as it already has an established and growing customer base, favorable relationships with third-party data providers that would take years to replicate and a highly talented management team. Waycare’s existing team will be joining the Rekor family and Waycare will be fully integrated into Rekor,” Mr. Berman continued. “With the addition of Waycare, we are well positioned to achieve additional inorganic growth in a fragmented industry.”
“We are very excited about the opportunity to become a part of Rekor Systems,” added Noam Maital, CEO and co-founder of Waycare. “Both companies were on an incredible journey building the infrastructure for smart cities which will benefit generations to come. By joining Rekor, we now have access to real-time roadway optical sensors, innovative software and enhanced data. Rekor is uniquely positioned to become a leading force in data aggregation and analysis for roadway intelligence. As a team we are looking forward to deploying our technologies and data to improve the quality of life for citizens and governments throughout the globe.”
Rekor expects the transaction to deliver long-term financial benefits. Waycare’s operations will enhance Rekor’s recurring revenue base, as well as contributing to our pipeline. The acquisition of Waycare will also have a significant immediate impact on the Company’s footprint, providing immediate opportunities to cross-sell products and services as well as accelerate access to new markets. Waycare’s AI platform is complementary to Rekor’s platform and can be quickly integrated into Rekor One™ to broaden Rekor’s suite of solutions for safety and incident management. The acquisition will also significantly increase the scale and breadth of Rekor’s already disruptive intelligence platform.
“By joining forces with Waycare, we are able to capitalize on an exceptional growth prospect,” resumed Mr. Berman. “We are just beginning to scratch the surface of a market that has significant potential. Growth in world population, continued urbanization, a focus on sustainable development and a push to improve the lives and safety of people living in communities and cities worldwide are placing substantial challenges on both governmental and business entities. We’re excited to be leading the way in defining this emerging industry of intelligent infrastructure and are grateful to have a strong balance sheet to support Rekor’s growth as a fragmented market continues to consolidate. We are looking forward to providing additional details on the conference call.”
To see a video demonstration of Waycare’s capabilities and Rekor One™, click here: https://rekor.co/new-capabilities
About Rekor Systems, Inc.
Rekor (Nasdaq: REKR) is a Maryland-based company providing real-time roadway intelligence through AI-driven decisions. Rekor provides commercial and government customers with actionable, real-time vehicle recognition data to enable informed decisions to be made faster and provide better outcomes. Rekor is transforming industries like Public Safety, Customer Experience, and Smart Cities in more than 70 countries across the globe with smarter, quicker, cost-competitive vehicle recognition solutions for security, revenue discovery and recovery, public safety, electronic toll collection, brand loyalty, parking operations, logistics, and traffic management. We use the power of artificial intelligence to analyze video streams and transform them into AI-driven decisions by our clients. Our machine learning software can turn most IP cameras into highly accurate and affordable vehicle recognition devices used to help protect lives, increase brand loyalty and enhance operations and logistics, without the need to install expensive new infrastructure. We make what was once considered impossible, possible.
About Waycare Technologies, Ltd.
Waycare is committed to making today’s roads safer and more accessible through its cloud-based, artificial intelligence (AI) traffic management and transit solutions. Waycare works collaboratively with traffic management centers, law enforcement, service patrol, and other agencies to bring together the widest array of data partnerships in the industry to produce an all-in-one traffic management platform. This Software as a Service (SaaS) solution enables actionable traffic safety insights and predictions including real-time automated incident and irregular congestion detection, crash prediction and forecasting, and collaborative tools for more efficient responses and planning to better serve drivers on the roads. For more information, visit waycaretech.com.