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 (www.ruggedcom.com) 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 (www.siemens.com) expects to take up shares under the offer in the second half of March 2012. According to reports, Belden offered an unsolicited C$22.00 per share.
With annual revenues of approximately US$94 million (fiscal 2011) and approximately 360 employees, RuggedCom, headquartered in Concord, Ontario, Canada, is a 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.
