International. IDIS confirmed the acquisition of Costar Technologies Inc. in a merger agreement valued at approximately US$23.2 million.
This value is subject to customary purchase price adjustments, which include approximately US$13.0 million to cancel Costar's bank debt and the remainder will go to holders of Costar's common shares and options acquired after payment of transaction expenses.
The Merger Agreement has been unanimously approved by the boards of directors of each brand. The completion of the merger will be subject to approval by Costar's shareholders. Costar's board of directors has recommended that Costar's shareholders approve the transaction and adopt the Merger Agreement at a special meeting of Costar's shareholders to be convened in connection with the merger transaction. Shareholders who collectively own approximately 45% of the outstanding common shares of Costar have entered into support and voting agreements pursuant to which they have agreed, among other things, to vote their shares of Costar common stock in favor of the merger transaction.
IDIS CEO Kim Young‐Dal said, "Leveraging Costar's established distribution networks and sales channels in the U.S. gives significant impetus to IDIS' growth strategy, which is based on building long-term relationships with system integrators. With this acquisition, IDIS will diversify and synergize its presence in the government sector and intelligent transport systems. Driving our business into these previously difficult areas to penetrate and expanding into new markets will provide a foundation to build our business not only in the U.S., but globally."
Scott Switzer, CEO of Costar, said: "We are very excited to join IDIS. As Costar's largest supplier, their success in the security industry combined with their engineering expertise has made them a valued partner over the years. Now, with access to their full range of advanced technologies and resources, we can offer enhanced solutions and services to our customers."
