Rutter strikes deal to sell its voyage data recorder business

<p>ST. JOHN’S, N.L. – Engineering and technology firm Rutter Inc. (TSX:RUT) says it has reached a non-binding agreement in principle to sell its Voyage Data Recorder business to Netwave Systems B.V.</p> <p>The sale to the Dutch company is subject to an asset purchase agreement, and will require lender and regulatory approvals, Rutter said Thursday.</p> <p>Financial terms of the deal were not disclosed.</p> <p>Voyage data recorders, or VDR’s, are black boxes for ships which record onboard instrument and navigation data.</p> <p>Money raised from the sale, and proceeds from the previously announced sale of Rutter’s consulting engineering business as well as cash on hand will be used to repay a bank loan.</p> <p>Fraser Edison, president and CEO of Rutter, said the company captured “a significant share” of the VDR retrofit market that existed from 2002 to 2010.</p> <p>”With the end of the VDR retrofit market; there has been ongoing consolidation of VDR suppliers.” he added. “We believe key success factors going forward in this market are having a stronger presence in Europe, further development of the next generation product, and acquiring and integrating other competitors.”</p> <p>Rutter sells technologies and engineering services in the marine defence, transportation, oil and gas sectors from its headquarters in Newfoundland and Labrador.</p>