Costar Technologies to be acquired by IDIS for over US $20m
James Thorpe
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IDIS has confirmed that it will pay approximately US $23.2m to acquire Costar Technologies Inc.
The agreement has been unanimously approved by the Boards of Directors of each company; completion of the deal is subject to approval by the stockholders of Costar.
“Leveraging Costar’s established distribution networks and sales channels in the US gives a significant boost to our growth strategy, which is founded on building long term relationships with systems integrators,” said Kim Young-Dal, CEO, IDIS.
“With this acquisition, IDIS will diversify and synergise its presence in the government sector and intelligent transportation systems.
“Driving our business in these previously hard-to-penetrate areas and expanding into new markets will provide a foundation for building our business not only in the US, but globally.”
Scott Switzer, CEO, Costar said: “We are extremely excited to be uniting with IDIS. As Costar’s largest supplier, their success in the security industry combined with their engineering expertise have made them a prized partner over the years.
“Now, with access to their entire range of advanced technologies and resources, we can deliver enhanced solutions and services to our customers.”
The Costar name will continue its use, with the company becoming a wholly owned subsidiary. IDIS’s total payment is inclusive of approximately US $13m to retire Costar’s bank debts.
Present Costar management team and employees are expected to join IDIS following the closing of the acquisition. Switzer will continue in his role as CEO.
