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 (above), 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).

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