Siemens has an agreement with RuggedCom Inc., Concord, Ontario, to acquire all of the common shares of RuggedCom by way of a friendly, board-supported takeover bid. The Canadian company is a provider of communications and networking solutions for harsh industrial environments. The takeover bid at C$33.00 per common share in cash totals approximately C$382 million (about US$383 million). RuggedCom's board has given its unanimous support to the deal, after rejecting a lower offer from Belden in December. Siemens expects to complete the deal in the second half of March 2012.
The Siemens offer is a premium of 142% over the closing price of RuggedCom shares on the Toronto Stock Exchange on the last trading day prior to Belden's unsolicited takeover bid, and represents a 50% premium over Belden's offer price, said RuggedCom's board in a release.
With annual revenues of approximately US$94 million in fiscal year 2011 and approximately 360 employees, RuggedCom makes robust, industrial-quality Ethernet communication products and network solutions such as routers and switches used primarily under rough environmental conditions — for example, in power distribution, refineries or traffic control systems.
Until now, the main emphasis of Siemens' industrial networking business has been on the European market. Adding RuggedCom's lines will help it in the North American and Asia-Pacific markets as well, said Anton Huber, CEO of Siemens' Industry Automation Division, in a separate press release. Siemens will continue to develop both the RuggedCom and Siemens product lines in the next few years, he added.