Connections +
News

RuggedCom responds to Belden buyout bid

RuggedCom Inc., a Concord, Ont. provider of communications networking offerings designed for mission-critical applications in harsh environments, has acknowledged that Belden Inc. has made an unsolicited all-cash offer for the company. Its...


December 21, 2011  


Print this page

RuggedCom Inc., a Concord, Ont. provider of communications networking offerings designed for mission-critical applications in harsh environments, has acknowledged that Belden Inc. has made an unsolicited all-cash offer for the company. Its estimated value is $280 million.

“RuggedCom cautions its shareholders that Belden has not made a formal offer and no action is required by RuggedCom shareholders at this time,” the company said in a release. “RuggedCom recommends that shareholders take no action until shareholders have received further communications from the board of directors.

In a released issued on Monday, Belden said it will propose to acquire all of the outstanding RuggedCom common shares for $22 in cash per share.

“This represents a 62% premium to the closing share price of C$13.61 as of December 16, 2011. Importantly, given the net cash position of RuggedCom’s balance sheet, the offer also represents an 87% premium to the enterprise value as of that date.”

RuggedCom has formed a special committee of its board of directors, consisting of J. Ian Giffen, Peter Crombie, and C. Ian Ross.

“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,” said John Stroup, president and CEO of Belden. “This offer is grounded in Belden’s growth strategy to enhance our global networking business portfolio.”