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Takeover
Certicom Accepts RIM's New Offer Of $106.5 Million
Waterloo - Security software maker Certicom Corp has accepted Research In Motion's offer to buy the company for around C$131 million ($106.5 million), or C$3 a share, after internet security firm VeriSign told the company it would not match RIM's new offer, reports Reuters. Last week, RIM doubled its offer from C$1.50 a share, after internet security provider VeriSign stepped in with a surprise bid of C$2.10 per share, which Certicom had accepted.
After weeks of sometimes hostile negotiations, Certicom chairman of the board Jeffrey Chisholm said in a statement that RIM's new deal - which represents a premium of approximately 252.9 percent over its closing price before RIM made its first offer - "is in the best interests of the Corporation." The security software firm took RIM to court over its first offer, alleging that the company had breached non-disclosure agreements by using confidential and proprietary information it had supplied to the Blackberry maker.
Certicom still has the right to pull out of the deal if they get a better unsolicited proposal, though they will be required to pay a C$4 million termination fee. The company said it had paid VeriSign a C$4 million to end their agreement.
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