* Siemens acquires niche player in smartgrid products
* Offers C$33.00/share
* 26 pct premium to Friday close
* Belden bows out
FRANKFURT, Jan 30 Siemens will
buy RuggedCom Inc, a Canadian maker of data
communications networks systems, for about C$382 million ($381
million) in cash, to improve access to markets in North America
and the Asia-Pacific region.
The deal, considered small for Europe's biggest engineering
company, is Siemens' largest since it took over Israeli solar
thermal fields maker Solel for $418 million in 2009.
Siemens' offer topped a recent C$280 million bid from U.S.
manufacturer Belden Inc, which said in a statement on
Monday that it would not raise its bid and instead plans to look
for other opportunities.
The German company's C$33.00 per share bid represents a
premium of 26 percent to RuggedCom's closing on Friday.
Shares of Ontario-based RuggedCom were up 25 percent at
C$32.80 in afternoon trade on Monday on the Toronto Stock
RuggedCom, which had revenues of around $94 million last
year and employs 360 people, makes heavy-duty routers and
ethernet cables specifically designed for challenging
environments such as those found in electric power substations
Anton Huber, Chief Executive of Siemens Industry Automation
division, said the acquisition of RuggedCom would improve
Siemens' router and switch products.
Siemens' portfolio of industrial ethernet networking
components is enjoying above-average growth rates compared with
the competition, he said without elaborating.
"It's not a large company and is a good move as Siemens will
be able to reduce its cash pile," analyst Pascal Gottmann of
Merck Finck said.
RuggedCom's board of directors will recommend that its
shareholders accept the offer, Siemens said.