Costar Technologies moves to acquire network camera specialist Arecont Vision
Costar Technologies has announced the signing of a definitive agreement to acquire the assets of Arecont Vision out of Chapter 11 bankruptcy. The purchase price is expected to be approximately $12 million in cash, subject to certain post-closing adjustments as set forth in the definitive agreement. The acquisition, which is structured as an asset purchase, is subject to customary closing conditions. Costar Technologies is financing the transaction thanks to proceeds from a new credit facility with UMB Bank. For their part, the Arecont Vision management team and employees are expected to join Costar Technologies following the closing of the acquisition.
After integration costs, the acquisition is expected to be neutral to earnings per share in 2018 and mildly accretive in 2019 due to operating synergies and improved efficiencies. Full earnings benefits are expected to be realised during 2020.
Arecont Vision develops and manufactures network cameras as well as megapixel surveillance cameras, offering a large selection of megapixel IP devices. The organisation is a US-based company with its headquarters, R&D, manufacturing and customer support services located in California. The business employs around 90 people and generated approximately $40 million in revenue last year.
In making the announcement, Costar Technologies’ president and CEO James Pritchett stated: “The acquisition of Arecont Vision expands Costar Technologies’ video surveillance platform by strengthening our product line. This move supports Costar Technologies’ strategy of becoming a leader in the video surveillance industry, transitioning from a value-added OEM product company to be a manufacturing and design business. Along with our other recent acquisitions, the Arecont Vision acquisition increases our manufacturing and design from approximately 50% to around 75% of our revenue.”