SoundThinking and Rekor Systems Announce Strategic Partnership

Rhea-AI Summary

SoundThinking (Nasdaq: SSTI) and Rekor Systems (Nasdaq: REKR) have announced a strategic partnership to launch PlateRanger, Powered by Rekor, a new end-to-end public safety solution. This collaboration combines SoundThinking's acoustic gunshot detection and investigative solutions with Rekor's vehicle and license plate recognition (LPR) technology.

PlateRanger is now available for demonstration and quotation, expected to be part of the SafetySmart™ platform in September 2024. This marks SoundThinking's expansion into the $3.2B global LPR market. The partnership aims to create synergies by combining SoundThinking's law enforcement customer base with Rekor's roadway intelligence capabilities.

The new offering bundles solar power, warranty, integrations, and customer service into a single subscription price, providing a cost-effective tool for law enforcement agencies. When used with ShotSpotter®, PlateRanger will enable streamlined gun crime investigations and improved operational efficiency.

Positive

• Strategic partnership with Rekor Systems to enter the $3.2B global LPR market
• Launch of PlateRanger, a new end-to-end public safety solution
• Integration with SafetySmart™ platform expected in September 2024
• Cost-effective bundled offering including solar power, warranty, integrations, and customer service
• Potential for streamlined gun crime investigations when used with ShotSpotter®

Negative

• None.

Insights

Financial Analyst

Financial Implications: The strategic partnership between SoundThinking and Rekor Systems could significantly impact the financial outlook for both companies. SoundThinking's expansion into the $3.2 billion global LPR market represents a substantial revenue opportunity. By integrating Rekor's LPR technology with its own public safety solutions, SoundThinking can offer a more comprehensive product, potentially increasing its market share. Investors should watch for updates on the adoption rate of the PlateRanger™ service and its contribution to quarterly revenues. The bundling of services into a single subscription price may also enhance recurring revenue streams, providing more predictable income.

Investor Takeaway: This partnership could enhance the value proposition and competitive edge of both companies, likely benefiting stock performance in the medium to long term. However, investors should remain cautious and monitor how well the integration is executed and the actual market uptake of the new service.

Tech Expert

Innovative Technology: The fusion of SoundThinking's acoustic gunshot detection with Rekor's vehicle and license plate recognition technologies is groundbreaking. The combined technology offers a more robust tool for law enforcement, potentially enhancing operational efficiency and investigative capabilities. The integration of these technologies into a single platform, SafetySmart™, can provide real-time, actionable intelligence, making it an appealing option for public safety agencies. This technological synergy may set a new standard in the industry, attracting more customers and driving technological advancement.

Tech Perspective: The seamless integration and user experience will be important for the success of PlateRanger™. If the technology proves reliable and user-friendly, it could see widespread adoption, setting a new benchmark in public safety technology.

Market Research Analyst

Market Opportunity: The strategic partnership opens new avenues for both SoundThinking and Rekor Systems in the burgeoning LPR market. With SoundThinking leveraging Rekor's established technology and customer base, the combined offering can potentially tap into a larger market, enhancing cross-selling opportunities. According to Emergen Research, the LPR market is expected to grow significantly and this partnership positions both companies well to capture a substantial share of this growth.

Market Analysis: The effective marketing and demonstration of the PlateRanger™ service will be critical in converting interest into sales. The focus on cost-effectiveness and efficiency, along with the privacy and security measures, aligns well with current market demands, potentially making it a preferred choice for law enforcement agencies.

SoundThinking to Resell and Integrate with Rekor’s Top Rated Vehicle and License Plate Recognition (LPR) Solution

Summary: New LPR service from SoundThinking called “PlateRanger™, Powered by Rekor^®” now available for demonstration and quotation.

FREMONT, Calif. and COLUMBIA, Md., July 23, 2024 (GLOBE NEWSWIRE) -- SoundThinking, Inc. (Nasdaq: SSTI), a leading public safety technology company, and Rekor Systems, Inc. (Nasdaq: REKR), a leader in developing and implementing state-of-the-art roadway intelligence technology for public safety, urban mobility, and transportation management, today announced a strategic partnership to create and launch a new end-to-end public safety solution, “PlateRanger, Powered by Rekor.”

This collaboration brings together two industry leaders, combining SoundThinking's expertise in acoustic gunshot detection and investigative solutions with Rekor's best-in-class vehicle and LPR solutions. PlateRanger is now available for demonstration and quotation and is expected to be part of the SafetySmart™ platform starting in September 2024, marking SoundThinking's expansion into the growing LPR market. This market is estimated to be $3.2B globally, according to Emergen Research.

The collaboration between SoundThinking and Rekor represents a fusion of cutting-edge public safety technologies, paving the way for a new era of comprehensive roadway intelligence and law enforcement solutions. This strategic partnership, formalized through the recent inclusion of SoundThinking in the Rekor Partner Network (“RPN”), a global ecosystem of technology, data, and solution providers working together to generate the most comprehensive and innovative solutions in roadway intelligence, is expected to create powerful synergies between two industry leaders by combining SoundThinking’s extensive law enforcement customer base and brand strength with Rekor’s advanced roadway intelligence capabilities.

“We’ve been using ShotSpotter successfully for years to improve our response time to shootings and save lives, and Rekor to provide accurate and rapid vehicle and license plate recognition to identify criminal suspect vehicles,” said Patrol Captain Paul Grech of the Bridgeport, CT Police Department. “The idea of more tightly integrating these two useful and proven products is compelling and can provide even better investigative insight for our department to solve crimes, ultimately supporting our mission to protect and serve the community.”

SoundThinking’s new PlateRanger offering bundles solar power, warranty, integrations and customer service into a single subscription price, providing law enforcement agencies with a cost-effective and efficient tool to enhance their investigative capabilities.

When used in conjunction with ShotSpotter^®, PlateRanger will enable streamlined investigations for gun crimes, improved operational efficiency, and real-time, actionable intelligence without the need for additional resources. When used standalone, the system delivers significant investigative value for vehicle-related crime.

“We’re thrilled to partner with Rekor Systems and this represents our commitment to bringing innovative solutions that help solve public safety challenges,” said Ralph Clark, CEO of SoundThinking. “We believe this strategic partnership is synergistic and will be a game changer, with two market leaders collaborating to bring unique value to customers. Partnering with the established industry leader in vehicle recognition and LPR helps ensure that customers receive a seamless experience and can maximize the impact of a fully integrated solution.”

David Desharnais, CEO of Rekor Systems, stated, “Our collaboration with SoundThinking significantly broadens the impact of our advanced roadway intelligence technologies for public safety. By merging our capabilities, we are developing an integrated solution poised to redefine public safety technology. We are thrilled about the innovation this alliance will deliver and its potential to profoundly benefit communities nationwide.”

Rekor’s products and technologies are established in the law enforcement sector and beyond, serving as mission-critical solutions for thousands of customers worldwide who rely on its roadway intelligence technologies. This presents significant potential opportunities for SoundThinking’s SafetySmart solutions.

Privacy policy and controls are a priority at SoundThinking, which has expanded its robust existing privacy and security policy to incorporate technology controls in the PlateRanger solution in order to protect communities.

Safe Harbor Statement
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements regarding the creation and launch of a new public safety solution, PlateRanger, powered by Rekor, including the expected availability, capabilities and potential thereof, expected synergy resulting from the partnership between SoundThinking and Rekor, and expansion opportunities for SoundThinking’s SafetySmart solutions. Words such as “expect,” “anticipate,” “should,” “believe,” “target,” “project,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “could,” “intend,” variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond the company’s control. Actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to the effective use of the company’s technology and achieving its intended benefits, as well as other risk factors included in the company’s most recent annual report on Form 10-K and quarterly report on Form 10-Q and other Securities and Exchange Commission filings. These forward-looking statements are made as of the date of this press release and are based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Except as required by law, the company undertakes no duty or obligation to update any forward-looking statements contained in this release as a result of new information, future events or changes in its expectations.

About SoundThinking
SoundThinking, Inc. (Nasdaq: SSTI) is a leading public safety technology company that delivers AI- and data-driven solutions for law enforcement, civic leadership, and security professionals. SoundThinking is trusted by approximately 250 customers and has worked with over 2,100 agencies to drive more efficient, effective, and equitable public safety outcomes. The company’s SafetySmart™ platform includes ShotSpotter^®, the leading acoustic gunshot detection system; CrimeTracer™, the foremost law enforcement search engine; CaseBuilder™, a one-stop investigation management system; ResourceRouter™, software that directs patrol and community anti-violence resources to help maximize their impact; and SafePointe^®, a next-generation concealed weapons detection system. SoundThinking has been designated a Great Place to Work^® Company. Please visit www.soundthinking.com.

About Rekor Systems, Inc.
Rekor Systems, Inc., (NASDAQ: REKR) is a trusted global authority in developing and delivering roadway intelligence utilizing state-of-the-art AI and machine learning. Pioneering the implementation of digital infrastructure in our communities, Rekor is redefining infrastructure by collecting, connecting, and organizing the world's mobility data - laying the foundation for a digital-enabled operating system for the road. With our Rekor One™ Roadway Intelligence Engine at the foundation of our technology, we aggregate and transform trillions of data points into intelligence through proprietary computer vision, machine learning, and big data analytics that power our platforms and applications. Our solutions provide actionable insights that give governments and businesses a comprehensive picture of roadways while providing a collaborative environment that drives the world to be safer, greener, and more efficient. To learn more, please visit https://www.rekor.ai/.

Company Contact:
Alan Stewart, CFO
SoundThinking, Inc.
+1 (510) 794-3100
astewart@soundthinking.com

Investor Relations Contact:
Matt Glover and Greg Bradbury
Gateway Group, Inc.
+1 (949) 574-3860
SSTI@gateway-grp.com

Media & Investor Relations Contact:
Rekor Systems, Inc.
Charles Degliomini
ir@rekor.ai

FAQ

What is PlateRanger and when will it be available for SoundThinking (SSTI)?

PlateRanger is a new end-to-end public safety solution combining SoundThinking's acoustic gunshot detection with Rekor's vehicle and license plate recognition technology. It's currently available for demonstration and quotation, with integration into the SafetySmart™ platform expected in September 2024.

How large is the LPR market that SoundThinking (SSTI) is entering with PlateRanger?

According to Emergen Research, the global License Plate Recognition (LPR) market that SoundThinking is entering with PlateRanger is estimated to be $3.2 billion.

What benefits does PlateRanger offer to law enforcement agencies using SoundThinking (SSTI) products?

PlateRanger offers a cost-effective, bundled solution including solar power, warranty, integrations, and customer service. When used with ShotSpotter®, it enables streamlined gun crime investigations, improved operational efficiency, and real-time, actionable intelligence without additional resources.

How does the partnership between SoundThinking (SSTI) and Rekor Systems benefit both companies?

The partnership combines SoundThinking's extensive law enforcement customer base and brand strength with Rekor's advanced roadway intelligence capabilities, creating synergies and potentially expanding market opportunities for both companies' technologies.