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RAE Systems To Be Acquired By Private Equity Firm For $95 million

20th Sep 2010, 6:09 pm
RAE Systems To Be Acquired By Private Equity Firm For $95 million

RAE Systems (NYSE AMEX:RAE), a California-based developer and manufacturer of chemical and radiation monitors and wireless networks, announced that it has agreed to be acquired for $1.60 per share in cash by Battery Ventures, a private equity firm focused on the technology sector. With 59.43 million shares outstanding, the deal values RAE Systems at about $95 million.

The purchase price represents a premium of approximately 53.8% over RAE Systems' closing share price on September 17, 2010.


Jesse Feldman, a Partner at Battery Ventures, said, "RAE Systems has significant long-term market growth potential, and we are excited to partner with the company on driving this growth both organically and through strategic acquisitions.”


A special committee of the RAE Systems board of directors and the disinterested members of the board have unanimously approved the deal.


After completion of the transaction, the RAE Systems board of directors will include Mr. Chen and Dr. Peter C. Hsi, co-founders of RAE Systems, as well as Jesse Feldman and Morgan Jones of Battery Ventures.


This transaction is still subject to approval by RAE Systems’ shareholders.  There is no financing condition to the transaction.


After the announcement, Rae Systems’ share price soared 51% to trade at $1.57 as of 12:46 pm ET.

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