WASHINGTON (dpa-AFX) - Costar Technologies Inc. (CSTI.PK) agreed to be acquired by IDIS Co., Ltd. for about $23.2 million.
The deal price includes about $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 about $5.00 to $5.38 per share, representing 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.
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.
Costar noted that stockholders collectively holding about 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.
According to Costar, 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, CEO of Costar, will continue in his role as CEO.
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