Acquisition combines leaders in marine radar signal processing.
ST-JOHN'S, Oct. 31, 2012 /CNW/ - Today, Rutter Inc. (TSX: RUT) is pleased to announce it has acquired OceanWaveS GmbH of Lüneburg, Germany, a recognized industry leader in the development and supply of radar-based wave and surface current measurement technology. Rutter's sigma S6 and OceanWaveS' WaMoS are respected within the industry for discrimination of ice, oil, small targets, waves, currents and bathymetry from conventional navigational X-band radar. Combining OceanWaveS' wave and current measuring capabilities with Rutter's sigma S6 Ice Navigator will give Rutter a competitive edge in a growing offshore and coastal monitoring market.
"The acquisition aligns with Rutter's operational strategy of delivering best-in-class ocean surface monitoring and reporting products in key markets such as offshore oil development, cold oceans exploration, and coastal monitoring and protection. WaMoS II is a mature product with demonstrated market demand. Acquiring this product and underlying technology both eliminates a significant development risk and creates new revenue generation opportunities." noted Rutter's President and Chief Executive Officer, Fraser Edison. "We are also pleased to have a German-based operation which provides Rutter with a technical center and physical presence closer to European customers" he added.
Measuring the wave and current properties of the ocean, simultaneously with monitoring oil, ice or small targets, will become a key component for a predictive mode capability within the sigma S6. Making oil spill response efforts more efficient, by providing predictive capabilities as to direction of drift and dispersion of oil, will create a direct performance advantage for Rutter which is expected to strengthen its overall share in that market. The merger of the two companies will also create benefits to existing customers of each company's traditional products by combining two mature technologies that have a proven performance record.
Co-founder of OceanWaveS Konstanze Reichert stated that, "Both companies share a passion for the creation of exceptional products and services and have strong R&D, sales, and support capabilities within the offshore, shipping and coastal monitoring markets. OceanWaveS has a global distribution and install base for its WaMoS II product, and has recently earned success in markets Rutter has identified as being emergent and important to its long term success, including China, and Austral-Asia. We look forward to contributing to Rutter's expansion in these markets."
Rutter Inc. has acquired the shares of OceanWaveS for total consideration of EUR 2,400,000 paid in the form of EUR 800,000 cash at closing and EUR 1,600,000 in non-interest bearing promissory notes due in quarterly payments over the next five years. To facilitate this transaction, the Company has borrowed an additional $1,000,000 under its existing term loan bearing interest at 10% with no change in repayment or maturity terms of the loan as previously disclosed.
About Rutter Inc. - Rutter is an enterprise focused on providing innovative technologies and engineering solutions. Rutter's global network supplies technologies to improve efficiency and safety in the marine, defense, transportation, oil and gas sectors from its headquarters in the Province of Newfoundland and Labrador. For more information see www.rutter.ca
About OceanWaveS GmbH - OceanWaveS is an enterprise focused on technology development for the real time measurement of directional ocean wave spectra. OceanWaveS' customer base includes operators in offshore oil development interested in operational safety and efficiency, navies pursuing greater understanding of ship stability and motion prediction, and coastal monitoring stations concerned with vessel traffic management, coastline erosion monitoring and tsunami warning. For more information see www.oceanwaves.org
This press release may contain forward-looking statements that involve risks and uncertainties. These statements reflect current expectations and are subject to a number of risks and uncertainties including but not limited to, change in technology and general market conditions. Due to the many risks and uncertainties, Rutter Inc. cannot assure that forward-looking statements that may be contained in this press release will be realized.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
SOURCE: RUTTER INC.
For further information:
Fraser Edison, President and Chief Executive Officer, Rutter Inc. +1 709 576 6666