Certicom agrees to RIM's sweetened takeover offer
TORONTO/NEW YORK (Reuters) - Security software company Certicom Corp agreed to be bought by BlackBerry maker Research In Motion for around C$131 million ($106.5 million), spurning a lower bid from VeriSign Inc.
RIM raised its offer to C$3 a share for Certicom last week, double its initial hostile takeover offer in December and significantly trumping VeriSign's C$2.10 per share bid.
"The Board of Directors of Certicom has concluded that the RIM transaction is in the best interests of the Corporation," Jeffrey Chisholm, chairman of Certicom's board, said in a statement late on Tuesday.
Certicom had earlier received notice from VeriSign that it would not try to match RIM's bid.
Certicom, whose technology has been approved by the U.S. National Security Agency for government communications, said it was still allowed to terminate the agreement with RIM in favor of an unsolicited superior proposal, subject to a C$4 million termination fee.
It said it paid Internet security provider VeriSign a C$4 million termination fee.
Shares in Certicom fell 8.9 percent on the Toronto Stock Exchange on Tuesday to C$2.97.
(Reporting by Claire Sibonney and Ritsuko Ando in New York; Editing by Peter Galloway and Valerie Lee)
© Thomson Reuters 2017 All rights reserved.