IDIS and Costar Technologies Inc. have announced that the latter will be acquired by the former in a merger transaction.
The agreement has been unanimously approved by the boards of directors of each company. Completion of the merger will be subject to approval by the stockholders of Costar.
Under the merger agreement, IDIS will pay approximately $23.2 million, inclusive of approximately $13 million to retire Costar’s bank debt.
“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 IDIS CEO, Kim Young-Dal.
“With this acquisition, IDIS will diversify and synergize 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 of 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 Costar becoming a wholly owned subsidiary. The 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.