Belden, a provider signal transmission
solutions for mission-critical applications, announced its intention to make an
all-cash offer to acquire RuggedCom for approximately C$280 million.
As per the offer, Belden will propose to
acquire all of the outstanding RuggedCom common shares for C$22.00 in
cash per share. This represents a 62 percent premium to the closing share price
of C$13.61 as of December 16, 2011.
“For RuggedCom shareholders, the Offer
is compelling in that it provides certainty of value and immediate liquidity at
an attractive premium to RuggedCom’s pre-offer share price. We believe that the
combined company would deliver considerable value for Belden customers and
shareholders, as well as provide growth opportunities to RuggedCom employees,”
said John Stroup, president and CEO of Belden.
Stroup also said that the offer is grounded
in Belden’s growth strategy to enhance their global networking business
portfolio.
Beldon has manufacturing facilities
in North America, South America, Europe and Asia and a
market presence in nearly every region in the world.
Belden has a longstanding presence and
growing business interests in Canada, where RuggedCom’s facilities are
primarily located, with established Belden operations
in Montreal, Cobourg and Vancouver.
The acquisition of RuggedCom would
accelerate the growth of Belden’s networking business in the electric power
transmission and distribution and transportation sectors.
Earlier this year, RuggedCom announced their participation in a Philadelphia implementation
project in partnership with Alcatel-Lucent.
RuggedCom is a provider of rugged
communications networking solutions designed for harsh environments, including
those found in electrical power substations, oil refineries, military
applications, intelligent transportation and metals and minerals processing.
By Telecomlead.com Team
editor@telecomlead.com
