German industrial conglomerate Siemens AG (SIE.DE, SI) Monday said it has agreed to acquire Canadian network supplier RuggedCom Inc. (RCM.TO) for C$33 per share in cash, or for a total transaction value of nearly C$382 million.
The board of RuggedCom has unanimously determined to support the takeover bid and recommend its shareholders accept the offer. Siemens expects to take up shares under the offer in the second half of March this year.
Ontario, Canada-based RuggedCom provides communications and networking solutions for harsh industrial environments. The company has about 360 employees and had revenues of nearly C$94 million in fiscal 2011.
Anton Huber, CEO of the Siemens Industry Automation Division said, "RuggedCom's portfolio would be an ideal addition to our range of industrial Ethernet communication products, improving our industrial-quality router and switch offering. In addition, the acquisition would improve our footprint in the North America and the Asia-Pacific region."
Siemens stated that until now, the main emphasis of its installed base in this segment has been in Europe.
The offer will be made through a wholly-owned subsidiary and is expected to be mailed in early February, Siemens added. Sales for Siemens in Canada for the fiscal ended September 30, 2011, were C$3 billion. The company has 61 offices and 13 manufacturing/assembly facilities across Canada.
In Frankfurt's Xetra, Siemens shares are currently trading at 72.58 euros, down 0.30 percent, on a volume of 1.23 million shares.
SI closed Friday's regular trading at $96.11 on the NYSE. In the pre-market activity, the shares are down 0.87 percent.
RuggedCom shares ended on Friday at C$26.25 on the Toronto Stock Exchange.
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