RAE Finds New Buyer
The acquisition will require shareholder approval. Also this month, RAE sold its 70% holding in the RAE Fushun joint venture with Liaoning Coal Industry Group for coal mining safety equipment to the Shenyang Research Institute of China Coal Research. Late last year, RAE settled a bribery case involving RAE Fushun and another Chinese subsidiary (see IBO 12/31/10).
San Jose, CA 1/18/11—Gas-detection systems company RAE Systems has entered into a definitive merger agreement with Vector Capital. An affiliate of Vector Capital will acquire the company’s common stock for $1.75 per share in cash, a $0.04 premium over the stock’s closing price on January 17. In connection with this transaction, RAE Systems has terminated its merger agreement with Battery Ventures, which agreed in September to pay $1.60 per share for the company (see IBO 9/30/10). RAE Systems has paid a termination fee of $3.39 million to affiliates of Battery Ventures. The transaction is expected to close in the second quarter. The shares of common stock owned by RAE Systems President and CEO Robert Chen and CTO Peter His will be exchanged for stock rather than cash.
