By Marin Perez
December 3, 2008
In a move to bolster its security, Research In Motion said Wednesday it
plans to make an unsolicited takeover bid for data encryption specialist
The BlackBerry maker said it will make an offer to acquire all of the
issued and outstanding shares of Certicom for $1.21 per share, a premium
of roughly 76% over the current share price. The bid values Certicom at
over $53 million, and RIM said it would be funded by cash on hand.
RIM said Certicom would be a "natural fit" for the smartphone maker
because Certicom is a worldwide leader in device security with Elliptic
Curve Cryptography (ECC), which is used for the majority of BlackBerry
security operations. RIM currently licenses Certicom's technology, and
the BlackBerry maker has been in acquisition negotiations with the
company since February 2007.
"As we are unable to engage Certicom management in a meaningful dialogue
to advance the terms of a potential transaction, we believe it is in the
best interests of our respective shareholders, employees and customers
to make this attractive offer directly to Certicom shareholders now,"
said RIM co-CEO Jim Balsillie, in a statement.
The takeover bid will be acceptable 35 calendar days from the official
offer, which will take place Dec. 12.
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