Belden Inc. announced that it has entered into a definitive agreement to acquire privately held OTN Systems N.V., a provider of automation networking infrastructure solutions, for approximately $71 million. The transaction is expected to close in the first quarter 2021, subject to customary closing conditions, and will be financed with cash on hand, which was approximately $500 million at the end of 2020.
Headquartered in Olen, Belgium, OTN Systems is a provider of easy to use and 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. The acquisition 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. It also 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.
The acquired company will generate additional revenues of approximately $35 to $40 million in the first full year of ownership. Belden and OTN Systems have a commercial partnership dating back to 2017.