The Chicago-based bicycle component maker signs adefinitive agreement to purchase financially strapped Rockshox, the maker ofmountain bike suspension systems, for $.41 a share cash. The transaction willbe treated as a merger with Colorado Springs-based Rockshox becoming a SRAMsubsidiary. The deal should close late next month or in early April. SRAM,founded in 1987, sees plenty of synergies between the two companies, from salesand marketing to product development.

Without the SRAM buyout, the Colorado Springs,CO-based maker of OEM bike components and accessories would have facedextinction, and possibly seen its assets seized by lender Wells Fargo. As ofFeb. 14, RKSHX was in violation of ... Log in to view full article.