Codan Communications completed the acquisition of Zetron, Inc. from JVCKENWOOD Corporation.
May 07, 2021
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Codan Communications entered into an agreement to acquire Zetron, Inc. from JVCKENWOOD Corporation (TSE:6632) for $45 million on March 31, 2021. The acquisition is on a cash free, debt free basis. Codan will merge its Critical Communications and Zetron businesses to create a single mission critical communications company trading under the stronger Zetron brand. The transaction will be funded through a combination of existing cash and a recently approved banking facility of AUD100 million ($76.1 million). The transaction is subject to obtaining change of control consents and other conditions precedent standard for transactions of this nature. The transaction is subject to final approval by the respective boards of Codan and JVCKENWOOD. The transaction is expected to be completed by end of April 30, 2021. Zetron is expected to contribute approximately AUD 67 million ($50.9 million) of sales and AUD 8 million ($6.1 million) in EBITDA under Codan’s ownership in financial year 2022 and therefore it will be earnings-per-share accretive. Robert L. Meyers and Christopher Hale of Sidley Austin LLP acted as legal advisor to Codan. Sangyo Sosei Advisory Inc. acted as financial advisor to JVCKENWOOD Corporation (TSE:6632) in the transaction.
Codan Communications completed the acquisition of Zetron, Inc. from JVCKENWOOD Corporation (TSE:6632) on May 7, 2021. Zetron will now be integrated with the North American-based critical communications division of Codan Communications, a Codan Limited portfolio company. The newly merged business will operate under the name "Zetron, a Codan Company" and continue to develop and market the current respective solutions of both businesses. The new Zetron has more than 300 global employees, doing business in over 150 countries on all seven continents of the world. The company will be headquartered in Redmond, Washington (USA), with additional operations in Victoria, BC (CAN), Brisbane, QLD (AUS), and regional sales offices located within the Americas, EMEA and APAC regions. All transaction requirements have been subsequently satisfied.
JVCKENWOOD Corp is a Japan-based company mainly engaged in the manufacture and sale of products related to mobility & telematics service field, public service field and media service field. The Company operates in three business segments. The Mobility & Telematics Service Field segment is engaged in the manufacture and sale of audio/visual (AV) systems, car navigation systems, drive recorders and in-vehicle devices. The Public Service Field segment is engaged in the manufacture and sale of commercial wireless equipment, professional video surveillance equipment, professional audio equipment and medical image display monitors. The Media Service Field segment is engaged in the manufacture and sale of professional video cameras, projectors, headphones, consumer video cameras, home audio, as well as contract business for contents such as audio and video software. The Company also offers service parts and others.
JVCKENWOOD CORPORATION 
