Costar Technologies Inc. announced the completion of its acquisition of the CohuHD camera 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, “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.”
Tom Kampfer, president of CohuHD Division, also commented, “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.”