Burnaby's surveillance camera manufacturer Extreme CCTV Inc. (TSX:EXC) is being acquired by Stuttgart, Germany-based Robert Bosch GmbH for $93 million.
Extreme CCTV shareholders will receive $5 per share in cash, which represents a 30% premium over the company's 30-day average closing price.
The deal is a strategic move for Bosch that aimed at strengthening its market share in the U.K., the U.S. and Canada.
Extreme CCTV, which develops and manufactures infrared closed-circuit TV cameras, has seen considerable growth in the past year. Its revenue increased 79% for the nine-month period ending June 30, 2007, to $32.7 million from $18.2 million. Net profit for the period rose to $1.7 million versus a net income of $1.2 million in the same period a year ago.
It expanded its business in the U.K. last year with its $10.7 million acquisition of U.K.-based Forward Vision CCTV Ltd., which was completed in August 2006. The deal expanded its European market, which now represents more than 60% of the company's revenue.
Extreme CCTV, which employs 74 people in B.C. and more than 140 worldwide, will become a subsidiary of Bosch Security Systems, which employs 10,300 people at 45 locations worldwide.
Extreme CCTV's management and other key shareholders representing approximately 40% of the company's outstanding shares have tendered their shares to the deal. It's expected to close in its first quarter, which ends March 31, 2008, subject to customary closing conditions and shareholder and regulatory approvals.
Extreme CCTV's share price range during the past week: unchanged at $3.90; 52-week high: 4.40; 52-week low: $2.75.