Acquisition extends Bosch Security Systems' product portfolio and geographic presence in Canada, U.K. and U.S.
Extreme CCTV Inc. and Robert Bosch GmbH, Stuttgart, Germany, recently jointly announced that they have entered into a definitive agreement whereby Bosch will acquire all outstanding shares of Extreme common stock at a price of C$5.00 per share in cash, resulting in an aggregate purchase price of approximately C$93 million. The purchase price represents a premium of approximately 30% over Extreme's 30-day average price. Following the closing of the transaction, Extreme will become part of Bosch's Security Systems division.
Extreme, along with its subsidiaries Derwent Systems and Forward Vision, is a leading provider of surveillance solutions incorporating advanced imaging technologies used in extreme environments. "Since its inception, Extreme has worked vigorously to develop a world-class portfolio of products, build a globally recognized brand and achieve sustainable revenue and earnings growth," said Jack Gin, President and CEO of Extreme.
"Merging with an industry leader such as Bosch represents an exciting opportunity for Extreme to accelerate our product development and growth initiatives by capitalizing upon Bosch's focus on research and development, utilizing its highly sophisticated manufacturing capabilities and integrating our product lines into its global sales channels. We believe this transaction is an excellent value proposition for our shareholders and this momentous event lays the foundation of a new era for Extreme and its subsidiaries. We fully anticipate that this business combination will result in an even brighter future for our employees and customers," continued Gin.
The Bosch Security Systems division offers a wide range of systems and services in the area of video surveillance, access control, intruder and fire alarms and evacuation systems. Bosch products include high performance video cameras, digital recording and video management systems, wireless intruder alarm systems and video network products. Bosch Security Systems solutions are used in a wide range of industries and applications such as banks, city centres, industrial complexes, retail stores, train stations and airports.
In 2006, Bosch Security Systems and its 10,300 associates at 45 locations worldwide generated sales of approximately €1.3 billion. "In acquiring Extreme, we want to extend our leading position in the fast growing video surveillance market," said Uwe Glock, President of the Bosch Security Systems division. "The company's innovative technologies will expand our product portfolio and strengthen our presence in the U.K., the U.S. and Canada," Glock said.
In connection with the agreement certain members of Extreme's senior management and certain of its affiliates, holding in the aggregate approximately 40% of the outstanding shares of common stock of Extreme, have entered into a support agreement with Bosch under which they have agreed to vote all of their shares of Extreme common stock in favour of the transaction. Completion of the transaction is subject to approval by Extreme's shareholders and other customary closing conditions, including regulatory approval. The acquisition is expected to close during the quarter ending March 31, 2008.