Iteris, a provider of traffic management solutions, has sold its vehicle sensors business to Bendix Commercial Vehicle Systems with an amount of $2 million subjected to adjustments and holdbacks on the basis of the working capital at the closing. Moreover, Iteris also anticipates that it would receive royalty related and performance earn-outs over a period of time.
This sale was concluded so that its focus would be on its core market, the Traffic Management, which incorporates Transportation Systems technology and software-intensive Roadway Sensors products. It also aims at expanding and enhancing their core technologies with continual internal development and other acquisitions in line with this plan.
According to Abbas Mohaddes, the CEO and President of Iteris, this divestiture would prove to be a very important stage for the company with a clear focus on their core technology and drive a strong growth. He further added that the ever growing importance of performance measurement and the expected passing of the Highway bill gives a great opportunity for the company to provide traffic information, which would enhance transportation systems.
Andreea Raaber, the Vice President of Bendix has stated that the purchase of the vehicle sensor business from Iteris, which includes the AutoVue Lane Departure Warning system and SafetyDirect systems, would help them in their technological growth.
Source: http://www.iteris.com