Belden Inc has announced its intention to sell Grass Valley as it looks to divest its live media business.
The company made the announcement as part of its Q3 2019 results.
In a statement, Belden said it intends to divest the Live Media business (aka Grass Valley) and implement a new broad-based cost reduction programme that is expected to result in $40 million of annualised savings.
John Stroup, president, CEO and chairman of Belden Inc, said: “We completed a rigorous strategic review of our portfolio of businesses, and today’s announcement marks an important outcome. We concluded that it is in the best interests of our shareholders, customers and employees to separate Grass Valley from Belden. This will enable Grass Valley to more effectively execute its strategic plan and pursue growth opportunities. Further, this separation will simplify Belden’s portfolio and improve organic growth and revenue visibility.”
Belden stressed that the decision is a “positive one for Grass Valley, its employees and customers.”
“Grass Valley is a market leader in the media technology business and a profitable operation with top quartile EBITDA performance. This makes Grass Valley an attractive investment to those interested in the media tech space and Belden has been actively discussing options with interested parties during 2019,” the company said.
Grass Valley added that it does not expect this announcement to disrupt its current operations and will continue to focus on meeting the needs of customers, partners and employees.