PRESS RELEASE: St. Louis, Missouri – Belden Inc. have announced that it has entered into a definitive agreement to acquire privately held OTN Systems N.V. for approximately $71 million, net of cash acquired.
The transaction is expected to close in the first quarter 2021. This is subject to customary closing conditions, and will be financed with cash on hand, which was approximately $500 million at the end of 2020.
Separately, the Company increased its revenue and EPS guidance for the fourth quarter 2020.
OTN Systems N.V. Acquisition Highlights
- Supports one of Belden’s key strategic priorities related to the growing demand for industrial automation by adding proprietary technology and mission-critical hardware and software products for more complete end-to-end solutions;
- Accelerates Belden’s Customer Innovation Center (CIC) initiatives with advanced solution selling and customer consulting capabilities, allowing the Company to bid on a wider array of projects;
- Offers meaningful business synergies in the product, technology and commercial areas;
- Provides additional revenues of approximately $35 – $40 million in the first full year of ownership; and
- Dilutive to GAAP EPS by approximately ($0.12 – $0.09), and accretive to adjusted EPS by approximately $0.10 – $0.13 in the first full year of ownership.
Headquartered in Olen, Belgium, OTN Systems is a provider of easy to use and highly-reliable network solutions tailored for specific applications in harsh, mission-critical environments. OTN Systems’ value-added technology allows customers to easily build, maintain and monitor complex networks in growing industrial markets, such as Process, Power Transmission, and Mass Transit. Belden and OTN Systems have a commercial partnership dating back to 2017.
“We are extremely excited to welcome the talented OTN Systems team to the Belden family,” said Roel Vestjens, President and CEO of Belden. “The business is uniquely well-positioned for success given its numerous market growth drivers and portfolio of innovative networking products and technologies. This is a very compelling acquisition for Belden that provides additional opportunities for profitable growth in our Industrial Solutions business.”
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