Ambulance-services and fire-protection company Rural/Metro Corp., Scottsdale, Ariz., announced it signed a definitive agreement to be bought by private-equity manager Warburg Pincus, New York, for $437 million in cash.
Rural/Metro's board has approved the deal and recommended that shareholders do the same. Shareholders would receive $17.25 per share, and there were 25.3 million shares outstanding as of Dec. 31, according to the company's latest quarterly report. The deal price is more than 37% higher than Rural/Metro's closing share price March 25. “The board believes that this transaction is an exceptional opportunity for Rural/Metro's shareholders,” said Christopher Shackelton, chairman of Rural/Metro's board, in a news release.