Iteris, a Santa Ana based traffic management company, has sold its vehicle sensors business to Bendix Commercial Vehicle Systems for $14 million. The company hopes that the sale to Bendix will advance its reputation in the traffic handling market.
President and CEO of Iteris, Abbas Mohaddes said that this divestiture is an important step in our strategic plan to focus the company on the traffic management market. It enables us to concentrate our energy and resources in the growing traffic management market and provides additional funding to pursue new growth initiatives in that market.
Iteris also has $2 million subject to holdbacks and adjustments based upon working capital at closing. It will also receive performance and royalty-related earn-outs as they occur. Bendix has initiated a short term manufacturing and distribution agreement with Iteris to ensure uninterrupted product availability and service during the transition period.
Kevin Romanchok, Bendix product line director for electronics, said in a statement that there was no doubt their goal was a seamless transition for their customers. Bendix is a member of the Knorr-Bremse Group, develops and supplies leading-edge active safety technologies, air brake charging, and control systems and components under the Bendix(R) brand name for commercial vehicles. This includes the Bendix ESP Electronic Stability Program and SmarTire tire pressure monitoring system.