Shares of Certicom (TSX: T.CIC, Stock Forum) surged more than 76% to $1.50 Wednesday, after Research in Motion (TSX: T.RIM, Stock Forum) announced that it intends to make an offer to acquire all of the issued and outstanding shares of the company.
The total acquisition cost is expected to be approximately $66 million, with RIM offering $1.50 cash per Certicom Share.
Certicom provides cryptographic technologies for software developers, government and corporate clients.
"Beginning in February 2007, RIM commenced discussions with Certicom management to evaluate a potential transaction. At various points since beginning discussions, RIM has conducted certain due diligence on the business and we continue to believe Certicom is a natural fit for RIM. Our collective expertise and business resources would increase the adoption of Certicom's technology," said Jim Balsillie, RIM’s co-CEO.
"We believe our proposed offer is fair, reflects the full value of Certicom and takes into account the growth prospects and potential synergies made possible by this transaction. 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," he added.
The offer will not be subject to any financing conditions and RIM says it intends to formally commence the offer on or before December 12.
On the Certicom Bullboard Wednesday, in a post called “finally”, woundedknee said: “This company has cost a lot of people a lot of money. It's a blessing to finally get this off the market[sic].”
