Hexagon Launches Acquisition of NovAtel Shares

Hexagon AB has launched a tender offer to acquire all the issued and outstanding common shares of NovAtel Inc., a Calgary, Alberta, Canada–based developer and manufacturer of OEM GNSS and related products, at a price per share of US$50 cash. Acting through its wholly owned subsidiary, Hexagon Canada Acquisition Inc., the Swedish technology company will keep its offer, which began October 19, open through November 27.

The tender offer is subject to certain conditions, including, without limitation, that at least 66.67 per cent of the shares calculated on a fully diluted basis (excluding any shares owned by Hexagon and its affiliates) have been tendered and the required regulatory approvals have been obtained.

Further, as announced in the October 8 definitive agreement between the two companies, Hexagon completed a private placement transaction on October 17, acquiring NovAtel shares and a debenture convertible into NovAtel shares at a purchase price of US$50 per share. Excluding the shares to be acquired in the tender offer and after giving effect to the shares issued and issuable to Hexagon in the private placement transaction, Hexagon will own 16.6 per cent of the issued and outstanding shares.