Siemens to acquire network supplier RuggedCom
Siemens Canada Ltd. is making a $382 million bid for all outstanding shares of network supplier RuggedCom Inc. in board-supported takeover.
BURLINGTON, Ont.: Siemens Canada Ltd. is making a $382 million bid for all outstanding shares of network supplier RuggedCom Inc. in board-supported takeover.
RuggedCom, a provider of communications and networking for harsh industrial environments based in Concord, Ont., had earlier this month rejected a hostile bid from a subsidiary of Belden Inc., a St. Louis, Ill. network supplier, for $22 a share, saying it substantially undervalued the company.
Siemens’ offer is for $33 a share.
The company, with annual revenues of approximately US$94 million and 360 employees, provides communications and networking for harsh industrial environments.
“RuggedCom’s portfolio would be an ideal addition to our range of industrial ethernet communication products, improving our industrial-quality router and switch offering,” said aid Anton Huber, CEO of the Siemens Industry Automation Division. “In addition, the acquisition would improve our footprint in the North America and the Asia-Pacific region.”
He said all of RuggedCom’s and Siemens’ product lines would be developed further in the next few years.
RuggedCom was recently selected to supply smart grid networking products to the Burlington Electric Department in Burlington, Vermont.
The company is also providing network solutions to the Central Maine Power Co. (CMP) as part of the Maine utility’s modernization of its 40-year-old bulk power system.