Arecont Vision LLC Asset Sale to Costar Technologies, Inc. Approved
Arecont Visionannounced that the acquisition by Costar Technologies, Inc. (OTC markets Group: CSTI) of its assets has been approved by the bankruptcy court (Court). It is anticipat...
Arecont Vision announced that the acquisition by Costar Technologies, Inc. (OTC markets Group: CSTI) of its assets has been approved by the bankruptcy court (“Court”). It is anticipated that the sale will close on July 13, 2018.
As previously announced, Arecont Vision initiated proceedings under chapter 11 of the United States Bankruptcy Code in the District of Delaware in May, 2018 and has achieved its goal of moving through this process quickly.
After the closing of the sale, upon emergence the assets formerly operated by Arecont Vision will begin operating as Arecont Vision Costar, LLC and be part of Costar, a US corporation that designs, develops, manufactures, and distributes a full range of proven products for the video surveillance and machine vision markets.
“Costar’s family of companies, composed of CohuHD Costar, Costar Video Systems, Innotech, and IVS Imaging, is a great strategic fit for Arecont Vision providing synergies that can be leveraged to grow our business in new market verticals and product areas. Costar provides resources that will enable Arecont Vision to continue to innovate and lead the market,” said Raul Calderon, Chief Operating Officer and General Manager, Arecont Vision. “I am proud of our team, and we are grateful for the support, patience, and continued commitment of our employees, suppliers and customers, as we look forward to becoming a new Costar business.”
The Company has been successfully operating under normal business conditions throughout the bankruptcy process, did not experience any layoffs, and continued the introduction of its new Contera IP cameras, video management system, web services, and cloud managed recorders. Under Costar’s leadership, substantially all of Arecont’s employees will be hired by Costar, customer programs and services will continue, and investments will be made into the development of new, industry-leading products.
“The acquisition of the assets of Arecont Vision expands Costar Technologies’ video surveillance platform by strengthening our product line,” said James Pritchett, Costar President and Chief Executive Officer. “It supports Costar’s strategy to become a leader in the video surveillance industry, transitioning from a value-added OEM product company to a manufacturing based and design company. Along with our other recent acquisitions, the Arecont acquisition increases our manufacturing and design from approximately 50% to 75% of our revenue.”
Court filings as well as other information related to the restructuring are available at www.omnimgt.com/arecont or by calling the restructuring information hotline, 844-378-2736 (toll free in North America) or +1-818-906-8300 (international).
