Codan Enters into Agreement to Acquire Zetron
Thursday, April 01, 2021 | Comments

Australia-based Codan announced that it has entered a definitive agreement to acquire 100% of the shares of U.S.-based Zetron, which is a wholly owned subsidiary of JVCKENWOOD.

The agreement was announced in required regulatory filings upon final approval by the respective boards of Codan and JVCKENWOOD.

The acquisition is comprised of an upfront payment of AU $59 million, which will be funded through a combination of existing cash and a recently approved banking facility of AU$100 million. The acquisition is on a cash free, debt-free basis and is expected to be completed by April 30, subject to obtaining change of control consents and other conditions.

Zetron is expected to contribute approximately AU$67 million of sales and AU$8 million in earnings before interest, taxes, depreciation and amortization (EBITDA) under Codan’s ownership in fiscal year 2022.

“The acquisition of Zetron is in line with Codan’s well-publicized strategy to transform our communications businesses from products to solutions,” said Codan CEO Donald McGurk. “This acquisition allows us to capitalize on Zetron’s extensive distribution network, brand strength and customer loyalty.”

Zetron recently celebrated 40 years in business. The company maintains a comprehensive portfolio of communications solutions that are relied on daily to serve hundreds of millions of people worldwide. Founded in 1980, Zetron’s solutions are now used at over 40,000 critical communications console positions in more than 100 countries, and on all seven continents. Customers range from single position rural emergency communications centers, to large metropolitan agencies and commercial command and control centers serving millions of people in public safety, transportation, utilities, healthcare, education, and other critical communications markets.

“Today’s announcement provides insight into an exciting new chapter for Zetron’s employees, customers and partners,” said Zetron President and CEO Brent Dippie. “Codan is well-recognized in the industry for sharing a similar set of values as those of Zetron, with an unwavering commitment to delivering quality, interoperability, reliability and customer-centricity. There are synergies and limited overlap across our respective solutions, markets, and resources, so the impending transaction presents compelling future opportunities.”

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