IDIS to Acquire Costar Technologies

IDIS Co., Ltd. and Costar Technologies Inc. recently announced the execution of a definitive agreement and plan of merger (the "Merger Agreement") pursuant to which Costar will be acquired by IDIS in a merger transaction.

The Merger Agreement has been unanimously approved by the boards of directors of each of IDIS and Costar. Completion of the Merger will be subject to approval by the stockholders of Costar. The board of directors of Costar has recommended that Costar stockholders approve the transaction and adopt the Merger Agreement at a special meeting of the stockholders of Costar to be called in connection with the merger transaction. Stockholders collectively holding approximately 45% of the outstanding shares of Costar common stock have entered into voting and support agreements pursuant to which they have agreed, among other things, to vote their shares of Costar common stock in favor of the merger transaction. The merger is expected to close during the second quarter of 2023, subject to approval by the Costar shareholders and the satisfaction of customary conditions to closing.

Under the Merger Agreement, IDIS will pay approximately $23.2 million, subject to customary purchase price adjustments, inclusive of approximately $13.0 million to retire Costar's bank debt and with the remainder going to the holders of Costar common stock and vested options after payment of transaction expenses. After debt, transaction expenses, and adjustments, it is expected that Costar stockholders will receive approximately $5.00 to $5.38 per share, representing an 11% to 20% premium to Costar's average share price over the last twelve months and a 4% to 12% premium to Costar's closing price on March 22, 2023. The acquisition will be funded by existing cash reserves of IDIS.

IDIS CEO, Mr. Kim Young-Dal, said "Leveraging Costar's established distribution networks and sales channels in the U.S. gives a significant boost to IDIS' growth strategy, which is founded on building long-term relationships with systems integrators. 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 U.S., 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."

IDIS will continue using the Costar name, with Costar becoming a wholly owned subsidiary of IDIS. The present Costar management team and employees are expected to join IDIS following the closing of the acquisition. Scott Switzer will continue in his role as CEO.

Featured

  • Meeting Modern Demands

    Door hardware and access control continue to be at the forefront of innovation within the security industry, continuously evolving to meet the dynamic needs of commercial spaces. Read Now

  • Leveraging IoT and Open Platform VMS for a Connected Future

    The evolution of urban environments is being reshaped by the convergence of Internet of Things (IoT) technology and open platform VMS. As cities worldwide grapple with growing populations and increasing operational complexities, these integrated technologies are emerging as powerful tools for creating more livable, efficient, and secure urban spaces. Read Now

  • Securing the Future

    Two security experts sit down with Security Today’s editor in chief Ralph C. Jensen to discuss what they see emerging and changing over the next several years along with how security stakeholders can harness these innovations into opportunities. Read Now

  • Collaboration Made Easy Using a Work Management Platform

    Effective collaboration between security operators, teams and other departments is critical to the smooth functioning of organizations. Yet, as organizations grow in complexity, it becomes more difficult for teams to coordinate with each other. This is compounded by staffing shortages, turnover and ineffective collaboration tools. Read Now

  • Creating a Safer World

    Managing and supporting locks and door hardware within a facility is a big responsibility. A building’s security needs to change over time as occupancy and use demands evolve, which can make it even more challenging. Read Now

New Products

  • Hanwha QNO-7012R

    Hanwha QNO-7012R

    The Q Series cameras are equipped with an Open Platform chipset for easy and seamless integration with third-party systems and solutions, and analog video output (CVBS) support for easy camera positioning during installation. A suite of on-board intelligent video analytics covers tampering, directional/virtual line detection, defocus detection, enter/exit, and motion detection.

  • Camden CV-7600 High Security Card Readers

    Camden CV-7600 High Security Card Readers

    Camden Door Controls has relaunched its CV-7600 card readers in response to growing market demand for a more secure alternative to standard proximity credentials that can be easily cloned. CV-7600 readers support MIFARE DESFire EV1 & EV2 encryption technology credentials, making them virtually clone-proof and highly secure.

  • Compact IP Video Intercom

    Viking’s X-205 Series of intercoms provide HD IP video and two-way voice communication - all wrapped up in an attractive compact chassis.