Two home-grown tech firms sold to US companies

The hollowing out of Canada's high technology sector is gathering momentum as scale, lax takeover legislation and low share prices contributed to the sale this month of two medium-sized, publicly traded firms. Gennum Corp, established 1987 as a subsidiary of Linear Technology Inc (established 1973), has been acquired by Camarillo CA-based Semtech Corp for $500 million. Burlington ON-based Gennum, most recently a developer and supplier of high-speed analog and mixed-signal semiconductors for the optical communications and video broadcast markets, will augment Semtech's semiconductor product line. Gennum has 450 employees and had revenue of $128.9 million in FY2010, up 51% from the previous year. RuggedCom Inc —a developer and supplier of rugged "smart grid" communications equipment for use in harsh environments — has also been sold. The Concord ON-based firm was acquired by Siemens AG through its wholly owned subsidiary, Siemens Canada Ltd, for $440 million. RuggedCom was put into play after an unsolicited takeover bid by St Louis MO -based Belden Inc, putting the company in play RuggedCom has 330 employees, with revenue of $94 million last year. The accelerated pace of Canadian tech firms being acquired by foreign buyers has been an increasing source of concern, prompting calls for changes to securities legislation that would give company boards more decision-making power when hostile bids are made on their firms (R$, January 20/12)