Siemens announces agreement to acquire Canadian network supplier RuggedCom Inc.
30 Jan, 2012, 07:00 ET
BURLINGTON, ON, Jan. 30, 2012 /CNW/ - Siemens has entered into an agreement with RuggedCom Inc. (TSX: RCM) to acquire all of the issued and outstanding common shares of RuggedCom by way of a friendly, board-supported takeover bid. The Canadian company listed on the Toronto Stock Exchange is a leading provider of communications and networking solutions for harsh industrial environments. The takeover bid is for C$33.00 per common share in cash, or a total transaction value of approximately C$382 million. RuggedCom's Board of Directors has unanimously determined to support, and to recommend that RuggedCom's shareholders accept the offer. Subject to the satisfaction or waiver of certain limited conditions, Siemens expects to take up shares under the offer in the second half of March 2012.
With annual revenues of approximately US$94 million (fiscal 2011) and approximately 360 employees, RuggedCom, headquartered in Concord, Ontario, Canada, is a leading provider of robust, industrial-quality Ethernet communication products and network solutions. These products are used primarily under rough environmental conditions - for example, in power distribution, in refineries, or in traffic control systems.
Siemens' portfolio of industrial Ethernet networking components is enjoying above-average growth rates compared to the competition. Until now, the main emphasis of Siemens' installed base in this segment has been in Europe. "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," said Anton S. Huber, CEO of the Siemens Industry Automation Division. Huber also indicated that all of RuggedCom's and Siemens' product lines would be developed further in the next few years.
"Acquisition of RuggedCom further demonstrates Siemens' commitment to Canada," said Robert Hardt, president and CEO of Siemens Canada. "We are preparing to join forces and work closely with RuggedCom to ensure a smooth transition for employees, customers and all stakeholders. We have been operating in Canada for over 100 years and our goal is to continue expanding this strong presence for the next 100 years and beyond."
The Siemens offer will be made through a wholly-owned subsidiary and is expected to be mailed in early February, 2012. A takeover bid circular, directors' circular and related documents will be mailed to shareholders in accordance with applicable laws (all subject to the terms and conditions of the written agreement).
About Siemens in Canada
For 100 years the innovative ideas from Siemens have helped make Canada a better place. From the Atlantic to Pacific oceans, more than 4,400 employees in Canada work together to provide answers that last in the fields of industry, energy and healthcare, as well as deliver infrastructure solutions for cities. Since it was federally chartered in August of 1912, Siemens has stood for technical achievements, innovation, quality and reliability. Sales for Siemens in Canada in fiscal 2011 (ended September 30), were $3.0 billion CAD. The company has 61 offices and 13 manufacturing/assembly facilities across Canada. Further information is available at www.siemens.ca
This press release may contain forward-looking statements based on the beliefs of the management of Siemens Canada Limited and its affiliates. The words "anticipate," "believe," "estimate," "forecast," "expect," "intend," "plan," "should," and "project," are used to identify forward-looking statements. Such statements reflect the management's current views with respect to future events and are subject to risks and uncertainties. Many factors could cause the actual results to be materially different, among others, changes in general economic and business conditions, changes in currency exchange rate and interest rates, introduction of competing products, lack of acceptance of new products or services and changes in business strategy. Actual results may vary materially from those projected here. Siemens Canada Limited and its affiliates do not intend or assume any obligation to update these forward-looking statements.
For further information:
Siemens Canada Limited
Communications and Strategy
Vice President, Communications and Strategy
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