Belden has submitted a binding offer to purchase privately held Grass Valley, a leader within the broadcast market, for $220 million.
The binding offer is subject to consultation with Grass Valley’s foreign labor works council, after which we will enter into a definitive agreement. Grass Valley provides innovative technologies including production switchers, cameras, servers, and editing solutions within the mission critical applications of broadcast customers. When combined with Miranda, the resulting end-to-end solution will be the most complete and compelling in the industry.
Grass Valley had approximately $290 million in revenue according to Belden’ press release, so the deal values Grass Valley at 0.75 revenue.
Even so, it’s probably not a bad deal for Grass Valley’s owner, PE firm Francisco Partners, which purchased Grass Valley from Technicolor in 2011 (closed in January 2011), for no money down, and an $80 million promissory not payable five years from the date of the deal.
Part of Francisco Partner’s deal to buy Grass Valley included an undisclosed additional pay-out if Francisco Partners sold Grass Valley for a partner in the future. Since these numbers are unknown, it’s difficult to know if the payments were triggered.
“The great thing about this overlap is the limited overlap,” said Belden CEO John Stroup.
“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 Mr. Stroup.
Here’s info on the deal and the rationale for it:
Press Release: Belden Reports Solid Results in Fourth Quarter 2013 and Announces Binding Offer to Acquire Privately Held Grass Valley for $220 Million
Press Release: Technicolor to sell its Broadcast Services activity to Ericsson
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