Codan Limited (ASX:CDA) has entered into a binding agreement to acquire 100% of US-based Eventide Communications LLC through its wholly owned subsidiary Zetron, Inc., valuing Eventide at an enterprise value of approximately $244 million on a cash-free debt-free basis.

Key Points

  • Codan, through Zetron, Inc., will acquire 100% of Eventide Communications LLC from its Founding Partners and Managing Director.
  • The enterprise value is approximately $244 million, funded via available cash, partial drawdown of existing debt facilities, and up to approximately $11 million in Codan shares issued to Eventide's Managing Director over three years.
  • Eventide is on track to achieve CY26 revenue of approximately $49 million and EBITDA of approximately $17 million, representing a CY26 EV/EBITDA multiple of approximately 14x, or approximately 10x including run-rate synergies.
  • Completion is expected to occur in early 2027, subject to regulatory conditions typical for transactions of this nature.

Eventide Communications LLC: Company Background

Established in 1971, Eventide is a founder-led provider of mission-critical recording and analytics solutions with more than 9,000 live recorders fielded across 80 countries. These include over 4,000 recorders currently fielded within 911 public safety answering points (PSAPs) in the United States. Eventide also services the utilities, transportation and defence industries. Its technology records and securely stores calls, video, radio and screen activity in emergency call centres and operational control rooms. In 2025, Eventide released "Critical Insights AI", a cloud-based extension of its recording solution delivering automated quality assurance, operational intelligence and data analytics within a PSAP.

Acquisition Funding and Financial Terms

The acquisition will be funded through a combination of available cash reserves, a partial drawdown of Codan's existing debt facilities, and the issuance of up to approximately $11 million in Codan shares to Eventide's Managing Director on a deferred basis over a three-year period post-completion. The number of shares issued will be fixed at completion based on the 30-day volume weighted average price of Codan shares prior to completion, issued in equal annual tranches. Codan expects the acquisition to be mid-single digits EPS accretive in the first full year of ownership including synergies. Integration and acquisition-related costs, excluding transaction costs, are expected to be approximately $4 million in FY27.

Transitional Arrangements and Leadership Continuity

Codan has entered into a transitional services agreement with Eventide Inc., under which Eventide Inc. will continue to provide administration, IT, HR, procurement and inventory management services to Eventide during integration into Zetron's systems. The transitional services agreement carries an initial term of six months, with options to extend for up to a further six-month period if required. Eventide's current Managing Director and Chief Technology Officer, Matthew Schwartz, as well as the senior leadership team of Eventide, will all remain with the business following completion of the acquisition.