UK-based ITIS has been bought out by American business INRIX in a deal worth £37 million.

UK-based ITIS has been bought out by American business INRIX in a deal worth £37 million.

INRIX says that traffic information company ITIS will allow it access to new markets including Australia, Brazil, Russia and Singapore

INRIX collects information about roadway speeds from trucks, vans and other fleet vehicles which are fitted with GPS devices. The acquisition is to be made through INRIX’s UK subsidiary.

Bryan Mistele, chairman of INRIX, says that combining the two businesses will allow it to take another step in its strategy to reduce traffic by providing better information and driver services globally.

He adds: ‘We are committed to continuing to grow and expand the ITIS business moving forward.’

In 2009 ITIS de-listed from the AIM market after eight years. The business gathers information about traffic direction and congested routes using technology which measures drivers by how quickly they move between one zone to another.

Chairman of ITIS, Trevor Chinn, says the deal is a culmination of an extensive testing process by the ITIS management team.

Chinn explains: ‘The offer price represents a significant premium to the prices at which the relatively illiquid unlisted ITIS shares have traded at in the period since the delisting from AIM, and gives ITIS shareholders the opportunity to sell their entire shareholdings in ITIS for cash.’

Seattle-based INRIX was founded in 2004 by former Microsoft executives Bryan Mistele and Craig Chapman.

ITIS recorded revenues of £16.56 million for the year to date 31 March 2011 and pre-tax profits of £1.83 million.