Siemens to buy Canada’s RuggedCom
Ruggedized communications network company accepts C$33.00 per share cash offer.
Concord, ON – Canadian rugged communications company, RuggedCom Inc., has agreed to a cash offer of C$33.00 per share from Siemens Canada. Under the terms of the agreement, Siemens will purchase all outstanding common shares of RuggedCom. The value of the proposed transaction — based on RuggedCom’s 13,321,740 issued and outstanding common shares — is approximately C$440 million.
The Siemens deal represents a premium of 142 percent to the closing price of RuggedCom shares on the Toronto Stock Exchange on December 16, 2011. According to the company, it also represents a 50 percent increase over Belden’s unsolicited take-over bid at an offer price of C$22.00 per share.
Marzio Pozzuoli, RuggedCom’s Chief Executive Officer, said, “We have great respect for Siemens and believe RuggedCom will be well positioned for continued growth and industry leadership under their ownership. We are confident that, in addition to providing excellent value to our shareholders, this transaction will be beneficial to RuggedCom’s valued customers and employees over the long term.”