Rural-Metro Corp. sells to private investment group www.privateofficer.com

Scottsdale AZ March 29 2011 Rural/Metro Corp. announced today that it has agreed to be acquired by private equity firm Warburg Pincus in a cash deal valued at about $438 million.

The Scottsdale-based ambulance and fire protection company' board approved a cash deal to sell to New York-based Warburg Pincus for $17.25 per share. The purchase price represents a 37 percent increase over Rural/Metro's Friday closing price of $12.55.

Shares of Rural/Metro this morning surged $4.59, or nearly 37 percent, to $17.14.

If shareholders approve the deal, Rural/Metro said it anticipates the deal will close by the end of June.

Rural/Metro Chief Executive Michael DiMino said in a statement that the merger will allow the ambulance and fire protection company the "resources and flexibility to fuel our organic and strategic growth initiatives."

Rural/Metro provides ambulance and fire protection services for about 440 communities in 20 states. Through its Southwest Ambulance unit, Rural/Metro provides ambulance service to more than one dozen Maricopa County communities. It also contracts for fire protection service in many Arizona communities.

Source:www.azcentral.com