Costar Technologies, Inc. Completes Acquisition of CohuHD Camera Products Division

Costar Technologies, Inc. Completes Acquisition of CohuHD Camera Products Division

Costar Technologies, Inc., announced Friday, June 6, 2014, had closed the acquisition of the CohuHD Costar Technologies, Inc. Completes Acquisition of CohuHD Camera Products Divisioncamera products and video solutions division of Cohu, Inc. The purchase price for CohuHD, including potential earn-out payments, is $10 million in cash. The acquisition is structured as an asset purchase and was financed with proceeds from a new credit facility with Bank of Texas. The present CohuHD management team and other CohuHD employees joined Costar following the closing of the acquisition.

In making the announcement, Costar President and Chief Executive Officer James Pritchett stated, “This is a great strategic fit for Costar as we combine with one of the most well respected brands in the industry. We look forward to welcoming the team from CohuHD to Costar. The combination will yield meaningful operational benefits, together with significant synergies in many areas, including marketing, sales and product development. CohuHD’s product offerings are complementary to Costar’s current products and solutions, and, because Costar and CohuHD serve different channels and customers, the acquisition creates numerous cross selling opportunities. Our combined sales organization will expand CohuHD’s product penetration in existing markets and promote CohuHD’s products to new markets, accelerating the growth of our sales footprint. With the addition of CohuHD, we expect Costar to become one of the 50 largest video security companies in the world, with more than $40 million in revenue per year.”

He went on to say, “The CohuHD acquisition is consistent with our strategy of providing high quality solutions to our customers. Our customers will have access to a broader product line while continuing to receive the same high quality of sales, service and support that they have come to expect from Costar and CohuHD.”

“We are very excited to be joining the Costar team and to carry on CohuHD’s 60 year history of leadership in the video camera market,” said Tom Kampfer, president, CohuHD Division. “Our combined resources and broader product offering will generate growth opportunities for CohuHD’s rugged, outdoor video cameras into new commercial channels, and access to Costar’s products will enable further sales opportunities within our core transportation markets.”

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