Almaviva Advances $335M Iteris Buyout With €350M Goldman Sachs Backing

Almaviva SpA is moving ahead with its acquisition of Iteris Inc., a smart mobility firm based in the United States, according to a recent Bloomberg report. Goldman Sachs has secured debt financing of €350 million ($389 million) to support the buyout. This bridge loan will eventually be replaced by high-yield bonds.

The move reflects renewed confidence among traditional lenders, as U.S. interest rates are expected to fall, encouraging banks to take on more risk after a period of caution. Goldman's decision to back the entire financing marks a shift as banks seek to re-enter the lucrative buyout space after setbacks in 2022, when many found themselves trapped in risky debt due to rising interest rates.

The acquisition, originally announced in August as reported by Finance Directory Europe, values Iteris at $335 million. Shareholders will receive $7.2 per share in cash, representing a 68% premium over the company's stock price as of early August 2024. Almaviva, an Italian digital innovation leader with operations spanning 30 companies in 79 global offices, sees this purchase as a key part of its growth strategy. By acquiring Iteris, which provides smart mobility infrastructure management solutions, Almaviva will expand its reach into the U.S. market and enhance its expertise in the rapidly growing smart mobility sector.

Iteris is renowned for its AI-driven ClearMobility Platform, which supports over 10,000 public agencies and private companies by optimizing transportation infrastructure. This platform helps improve traffic flow and safety, making Iteris a valuable addition to Almaviva's digital transformation services, which focus on enhancing human-centered technologies.

The deal is expected to close by the end of 2024, pending approvals from Iteris shareholders and regulatory bodies. Once finalized, Iteris will become a privately held company, and its shares will be delisted from Nasdaq. Morgan Stanley & Co. and Latham & Watkins are providing financial and legal advisory services to Iteris, while Almaviva is being advised by Goldman Sachs Bank Europe, alongside several top legal firms.

Iteris was recently selected by the City of Lakeland, Florida, to implement smart infrastructure aimed at improving road safety. This initiative, part of Lakeland's Intersection Crash Avoidance Safety Program, involves deploying Iteris' Vantage Next video detection system and VantageLive!, a web-based data analysis service for traffic management. This project aligns with Almaviva's broader vision of using digital solutions to address human-centered challenges.