29-Nov-2023: Codan have made an Acquisition-Announcement.PDF this morning. They are paying an upfront cash payment of $9.1 million plus additional payments of up to $12.2 million if certain earn-out targets are achieved over the next 3 years. The acquisition consideration will be funded from Codan’s existing debt facility, so there will be no CR.

Codan's wholly owned subsidiary, Domo Broadcast Holdings LLC, has entered into a binding agreement to acquire 100% of the shares of Wave Central LLC (Wave Central), with completion to occur on 1 December 2023. Wave Central’s founders and senior management have all joined Codan’s Tactical Communications Broadcast division, Domo Broadcast, and will remain in the Wave Central business. Wave Central is a leading North American systems integrator of wireless broadcast equipment and creates industry specific products integrated with Domo Broadcast’s technology for sports, cinema and broadcast applications. Their product portfolio consists primarily of wireless video camera links and high-quality broadcast products using core Domo Broadcast technology. Wave Central has been Domo Broadcast’s primary distribution channel into the North American market for 15 years.

This is another smart acquisition by a top-quality management team at Codan. As usual, the acquisition is small, it's a good fit, it adds capability within an area of core competency, and much of the acquisition cost is dependent on the acquired company continuing to perform within expectations as part of the larger Codan business. And, again, the people who built this company up are coming across with the company and will continue to run it.

The market seems a little unsure about this so far, based on the Codan share price movement today (no real strong move either way), but they have been in an upward trajectory lately, and I don't see this announcement derailing that uptrend in any way.

Another good acquisition!