Good for Costar. We used to buy tons of their used cameras from walmart stores when they would update all of their stores and turn around and sell em on ebay. At that time they were OEM'ing from Hitron. Unsure if they are actually manufacturing products but this is a great move for them to move in that direction.
Costar (CSTI) seems to have very little interest on the Street. Trading volume is usually in the hundreds and most days seem like no volume. Wonder if this will help spike interest in the company if they acquire Arecont.
At the level they are at, most anything would help...
Arecont's name alone may not make much of a difference but the increase in revenue could as well as if they tell a story of being more of a technology developer rather than an OEM, i.e., Arecont's FPGA technology. Of course, how much they retain / use, if they win, remains to be seen.
Fairly small market. I would estimate there are somewhere around 50k DOT highway cams nationwide, maybe 75k. With a lifespan of 5-10 years, you can estimate how many are being replaced yearly. Not talking public safety cameras, these are DOT operational traffic cameras.