IDIS Co. and Costar Technologies (OTC Markets Group: CSTI) announced the execution of a definitive agreement under which Costar will be acquired by IDIS.
Under the merger agreement, IDIS will pay approximately $23.2 million, which includes approximately $13 million to retire Costar’s bank debt. After debt, transaction expenses and adjustments, it is expected that Costar stockholders will receive approximately $5 to $5.38 per share, representing an 11% to 20% premium to Costar’s average share price over the last 12 months and a 4% to 12% premium to Costar’s closing price on March 22.