February 23, 2010 (FinancialWire) — Federal Signal Corp. (NYSE: FSS) said that it has amended its definitive arrangement agreement with Sirit Inc. (TSX: SI), upping the price it will pay to acquire the Canadian 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 CDN$0.43 per share by way of a court approved plan of arrangement under Canada’s Business Corp.s Act, an increase of CDN$0.13 per share or 43% over the original cash consideration.

The transaction has a total equity value of around CDN$72 million (US $69 million).

The increased cash consideration represents a premium of over 96% over Sirit’s average closing price during the 30 trading days ending January 13, 2010, the last trading day prior to the announcement of the original plan of arrangement, and a premium of around 129% over Sirit’s average closing price during the 60 trading days ending January 13, 2010.

Federal Signal said it 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. A voting and lock-up agreement with Federal Signal under which certain executive officers, directors and shareholders of Sirit owning around 28% of the outstanding common shares have agreed to vote their shares in favor of the arrangement remains in effect, according to Federal Signal.

A termination fee of CDN$1.5 million payable to Federal Signal by Sirit in certain circumstances has been increased to CDN$2.5 million, and otherwise remains payable in the circumstances and manner set forth in the arrangement agreement.

Illinois-based Federal Signal makes safety and security that serves municipal, governmental, industrial and institutional customers.

FinancialWire(tm) is committed to serving the financial community through true journalism and providing relevant resources to investors. Standards-based, independent equity research on numerous public companies is available through the Investrend Research Syndicate (http://www.investrend.com/reports) written by FIRST Research Consortium (http://www.investrend.com/FIRST) member-providers. Free annual reports and company filings for companies mentioned in the news are available through the Investrend Information Syndicate (at http://investrend.ar.wilink.com/?level=279). FinancialWire(tm), in cooperation with the Investrend Broadcast Syndicate, also provides complete, daily conference call and webcast schedules as a service to shareholders and investors via the FirstAlert(tm) Network’s “FirstAlert(tm) Daily” (http://www.financialwire.net/news-alerts/).

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) website (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.