RIM’s $53 million offer to Certicom considered under-valued
BlackBerry manufacturer Research In Motion has had its hostile takeover bid for data encryption specialist Certicom has been blocked by the Canadian courts.
RIM tabled a $53 million offer in December to buy the content security software house, which was snubbed as under-valuing the business.
Certicom has now said the Ontario Superior Court of Justice had granted a permanent injunction to block the buyout, because RIM had breached 2007 and 2008 non-disclosure agreements between the two companies.
The proposed acquisition was regarded as being highly strategic for RIM as it would help accelerate take up of the Blackberry device by government and public sector authorities, which insist on hardened security in mobile systems.
RIM, which may appeal the court order, would still be entitled to make a friendly offer for the Certicom business.