May 21, 2011 (Marketwire) --
SAN JOSE, CA -- (Marketwire) -- 05/21/11 -- In the news release, "RAE Systems Inc. Announces Amended Merger Agreement With Vector Capital Increasing Price to $2.05 per Share in Cash," issued earlier today by RAE Systems (NYSE Amex: RAE), we are advised by the company that there are several revisions to the first paragraph, including that the fourth sentence of the first paragraph should read "Vector Capital proposed this amendment on May 20, 2011 following a definitive proposal submitted on May 20, 2011" rather than "Vector Capital proposed this amendment on May 19, 2011 following a definitive proposal submitted on May 19, 2011" as originally issued. Complete corrected text follows.
Rae Systems Inc. Announces Amended Merger Agreement With Vector Capital Increasing Price to $2.05 per Share in Cash
SAN JOSE, CA -- May 21, 2011 -- RAE Systems Inc. (NYSE Amex: RAE) ("RAE" or "the Company"), a leader in delivering innovative sensor solutions to serve industrial, energy, environmental, and government safety markets worldwide, today announced that it has entered into an amendment to its merger agreement with an affiliate of Vector Capital ("Vector") under which the acquirer has increased the price per share to be paid to our unaffiliated stockholders to $2.05 per share. The termination fee payable in the event that the Vector merger agreement is terminated in connection with a superior offer has not been increased. The amended merger agreement was unanimously approved by the Special Committee of the Board of Directors of RAE. Vector Capital proposed this amendment on May 20, 2011 following a definitive proposal submitted on May 20, 2011 by Battery Ventures and another private equity firm to acquire the Company, also for $2.05 per share. The transaction is subject to customary closing conditions, including the approval of RAE's stockholders. There is no financing condition to the transaction.
As previously announced, the special meeting of stockholders to vote on the transaction will be held at 10:00 AM Pacific time on Thursday, June 9, 2011.
About Vector
Vector Capital is a leading global private equity firm specializing in spinouts, buyouts and recapitalizations of established technology businesses. Vector identifies and pursues these complex investments in both the private and public markets. Vector actively partners with management teams to devise and execute new financial and business strategies that materially improve the competitive standing of these businesses and enhance their value for employees, customers and shareholders.