Siemens Canada Saves Ontario's RuggedCom from Hostile Takeover, Acquires Company for $382 Million

Posted by Knowlton Thomas on 2012-01-30 9:39:00 AM

Siemens Canada has reached a friendly takeover deal with RuggedCom, an Ontario-based maker of smart grid technology. Siemens will pay $33 in cash per common share, making the deal worth roughly $382 million.

Only weeks ago, RuggedCom resisted a hostile takeover bid by Belden. The American company tried to steal Rugged for less than $280 million, but according to the Financial Post, the Ontario company "adopted a poison pill plan to allow management time to search for other offers." 

Siemens' bid marks a 142% premium. Should Rugged's board approve the deal, it will close in late March. Should they reject it, RuggedCom will owe Siemens a $15 million termination fee.

Photo: Michaela Rehle, Reuters

Company:
RuggedCom Inc.
Website:
http://www.ruggedcom.com
Location:
Toronto, Ontario, Canada

RuggedCom is a leading provider of rugged communications networking solutions designed for mission-critical applications in harsh environments. RuggedCom's technology solutions include Ethernet switches, network routers, wireless devices, serial servers, media converters, software and professional services. RuggedCom's products are designed for use in harsh environments such as those found in electrical power... more

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Knowlton Thomas

Knowlton Thomas

Knowlton is the Associate Editor of Techvibes. A Vancouver-based writer and author, Knowlton has been published in national publications and has also appeared on television and radio. He has written two ebooks and more are in the works. Previously, he was an editor for New Westminster weekly The Other Press and served on its board of directors. When not working, Knowlton enjoys playing... more

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