Belden has submitted a binding offer to purchase Grass Valley for $220 million. Belden intends to combine Grass Valley with Miranda, provider of hardware and software solutions for TV broadcast, cable, satellite and IPTV. Grass Valley’s name will remain.
The transaction is subject to regulatory approval in the US and elsewhere and is to consultation with Grass Valley’s foreign labour works council, after which Belden will enter into a definitive agreement. “We are extremely excited to have Grass Valley join the Belden family. By combining Grass Valley and Miranda, we will create the broadcast industry’s largest and most complete portfolio,” said John Stroup, president and CEO of Belden.
The announcement comes at the same time as Belden reported fiscal fourth quarter and full year 2013 results for the period ended 31 December 2013. Stroup commented: “Market demand appears to be stable in the majority of our end-markets. This in combination with the execution of our Market Delivery System should create the catalyst for organic growth and margin expansion. Even after completing the acquisition of Grass Valley, our funnel and balance sheet will remain strong. We are confident that these initiatives position us to perform well, and we remain comfortable with our previously announced earnings outlook for 2014.”
Belden will continue to promote the Grass Valley brand under the leadership of Miranda President Marco Lopez (pictured). Belden believes that the ability to purchase an end-to-end solution from the combined businesses will reduce complexity and increase functionality, ease-of-setup, and maintenance and operability. The company aims to provide access to the most comprehensive, innovative products in the broadcast infrastructure industry through one organisation.