Costar Technologies to buy CohuHD
COPPELL, Texas—Costar Technologies on June 4 announced that it has signed a definitive agreement to acquire CohuHD, the camera
products and video solutions division of Cohu.
The purchase price for CohuHD, including potential earn-out payments, is expected to be $10 million in cash. The acquisition is structured as an asset purchase and is subject to customary closing conditions.
Costar is financing the transaction with proceeds from a new credit facility with Bank of Texas. The present CohuHD management team and other CohuHD employees are expected to join Costar following the closing of the acquisition.
CohuHD is a provider of video cameras and related products, specializing in IP video solutions for traffic monitoring, security, surveillance and military applications; and accessories such as cables, camera mounts, lenses and data storage devices. CohuHD’s high-definition video systems are designed for the performance requirements associated with critical infrastructure environments.
“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,” Costar president and CEO James Pritchett said in a prepared statement. “We believe our combined sales organization will be able to expand CohuHD’s product penetration in existing markets and promote CohuHD’s products to new markets, accelerating the growth of our sales footprint,” he added.
Tom Kampfer, president and GM, CohuHD Division said in a statement: “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.”
Alston & Bird advised Costar on the deal.