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RAE Systems (AMEX: RAE) said Wednesday that private equity firm Vector Capital has increased its previously announced takeover offer for the company by 6.4% to $2.00 per share, up from the prior $1.88-per-share bid.
San Jose, California-based RAE said a merger agreement has been amended to reflect the increased price. The higher bid comes after a $2.00-per-share definitive proposal was submitted to the company on Sunday from Battery Ventures and another PE firm.
At roughly 59.51 million RAE shares outstanding, the deal would be valued at around $119 million.
Under the amended Vector transaction, which has already been approved by RAE's board, the termination fee payable was also increased to $4.27 million, up from $4.01 million.
Founded in 1991, RAE Systems provides gas detection systems that enable real-time safety and security threat detection. The company's products are used in more than 95 countries by many corporations and government agencies.
The deal remains subject to closing conditions, including the approval of RAE's stockholders. There is no financing condition to the transaction, RAE said.
Shares of RAE Systems rose nearly 7% to trade at $2.00 - at the revised offer price- near market close on Wednesday.
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