Tuesday, February 23, 2010

Federal Signal increases offer for Sirit

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Federal Signal Corporation said that it has amended its definitive arrangement agreement with Sirit Inc. (TSX: SI), a global provider of radio frequency identification technology. Under the terms of the amendment, Federal Signal will acquire all of the issued and outstanding common shares of Sirit for cash consideration of C$0.43 per share by way of a court approved plan of arrangement under the Business Corporations Act, an increase of C$0.13 per share or 43 percent over the original cash consideration. The transaction has a total equity value of approximately C$72 million (US $69 million).

Federal Signal increased its offer following Sirit's recent receipt of an unsolicited and non-binding acquisition proposal.

A special meeting of shareholders of Sirit to consider the Arrangement will be held as scheduled on February 26, 2010. The previously announced voting and lock-up agreement with Federal Signal under which certain executive officers, directors and shareholders of Sirit owning approximately 28 percent of the outstanding common shares have agreed to vote their shares in favor of the Arrangement remains in effect.

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