RAE Systems to Be Acquired
The San Jose Business Journal reported that the deal’s estimated value is $95.3 million. RAE Systems’ revenues declined 12.8% to $83.2 million in 2009, and the company reported an operating loss of $7.3 million. As of June 30, the company had $18.9 million in cash and cash equivalents. Product lines include photoionization detectors, electrochemical sensors and radiation-detection systems. (For RAE Systems’ second-quarter results, see page 12.)
San Jose, CA 9/20/10—Publicly held RAE Systems has agreed to be acquired by Battery Ventures, a multistage investment firm. Battery Ventures will pay $1.60 per share, which is a 53.8% premium over RAE Systems’ closing stock price on September 17. RAE Systems provides gas detection systems for real time safety and security threat detection. “RAE Systems has successfully navigated through a great deal of change over the past few years. With this newest evolution, RAE Systems will leverage Battery Ventures’ strategy and vision to help increase its industry presence via organic growth and complementary acquisitions,” stated RAE Systems President and CEO Robert Chen. Following the acquisition, the Board will include Mr. Chen and Dr. Peter C. Hsi, the founders of RAE Systems, who will also remain stock holders. The transaction is subject to shareholder approval.
