Certicom said that its shareholders had agreed to be acquired by Research In Motion in a $2.44-per-share offer, a move that brings to an end a months-long pursuit of Certicom's cell phone security business.
On Dec. 3, RIM made a hostile takeover offer for Certicom, which specializes in wireless VPN security and encryption, for around $1.19 per share, or $52.4 million, after it said it tried to reach a deal with Certicom's managers but could not. At the time of the bid, RIM said the offer represented a 75 percent premium on Certicom's shares as they stood on Dec. 2. Certicom rolled out the first wireless VPN for cellphones in 2002 and has worked with a variety of handset makers, including Motorola.
Certicom then filed and received an injunction on the bid from the Ontario Superior Court of Justice, arguing that RIM and its subsidiary had violated nondisclosure agreements that Certicom and RIM had signed in 2007 and 2008 by using confidential information from Certicom to make its bid.
Then, less than a week later, Certicom agreed to be acquired by VeriSign in $1.68 per-share offer. However, in early February, Certicom reversed course and said it was considering an "improved" version of RIM's offer. On Feb. 10, Certicom received word from VeriSign that it would not match RIM's new offer.
- see this release
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RIM makes bid for Certicom's cell phone security business