Extreme CCTV, which is publicly listed, is best known for its work in high-performance imagining in environmentally difficult conditions – such as darkness, poor visibility and extreme temperatures. Its range include active infrared illuminators, cameras and license plate capture systems.
The deal, which must still be ratified by stockholders and regulatory authorities, works out at 5 Canadian dollars per share.
Shares in the company closed on Wednesday at 4.91 Canadian dollars. Since June, the shares have been trading between 3.5 and 3.9 Canadian dollars, making the Bosch offer an approximately 30 percent premium.
Extreme said in a statement that senior management have entered into a support agreement to vote all of their shares – around 40 percent of the outstanding common stock – in favour of the take over.
Bosch said it hopes the deal will close in February 2008.
Extreme’s three best-known brands are Extreme, Forward Vision and Derwent. The company generated sales of 27 million Canadian dollars ( GB pound 13 m) in 2006. Bosch said it hoped this acquisition will boost is security systems division and extend its activities in video surveillance.
“In acquiring Extreme CCTV, we want to extend our leading position in the fast growing video-surveillance market,” said Uwe Glock, president of the Bosch Security Systems division.
He added: “The company’s innovative technologies will expand our product portfolio and strengthen our presence in Canada, the U.S. and the U.K.”
Jack Gin, President and CEO of Extreme said that he thought the deal was excellent news for the company and its shareholders.
“Since its inception, Extreme has worked vigorously to develop a world-class portfolio of products, build a globally recognized brand and achieve sustainable revenue and earnings growth,” he said.
“Merging with an industry leader such as Bosch represents an exciting opportunity for Extreme to accelerate our product development and growth initiatives by capitalizing upon Bosch’s focus on research and development, utilizing its highly sophisticated manufacturing capabilities and integrating our product lines into its global sales channels.”