Market Insight

Belden acquires Grass Valley

February 14, 2014

Stelios Kotakis Stelios Kotakis Senior Research Analyst, Service Provider Technology

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Belden, a signal transmission solutions provider, has submitted a binding offer to acquire privately held Grass Valley, a specialist in TV-broadcast equipment, for $220 million. The offer is still subject to customary closing conditions and regulatory approvals. Belden’s intention is to combine Grass Valley with Miranda which is a Belden brand providing hardware and software solutions for television broadcast. If the deal goes through the two companies will continue to operate under the Grass Valley brand.

Our Take

Following Miranda acquisition in 2012, Belden now looks for further development by making a bid for Grass Valley, a well-positioned company within the broadcasting industry providing technologies including production switchers, cameras, servers, and editing solutions. Having already brought Miranda under its wing, which has 22 years of experience providing solutions for television operations including production, playout and delivery, Belden made a $220m offer for Grass Valley and hopes to see the deal closed by the end of March 2014.

The two companies both have significant positions within the broadcast industry. Grass Valley has an estimated revenue of $500m with more than 70% of it coming from outside of the USA, while Belden’s broadcast solutions revenue was $664m for FY2013. Upon completion of the deal, Belden will become the world’s largest broadcast equipment vendor. Additional benefit will come from access to Grass Valley’s intellectual property, human resource expertise and manufacturing capacity in an attempt to create a complete, qualitative and cost efficient end-to-end solution for both companies existing and potential customers.

Another significant benefit for Belden will be Grass Valley’s global footprint as most of its business is located outside of the USA, both in terms of sales and employees. Due to the high visibility of the Grass Valley brand internationally, Belden will likely maintain and develop from the strongest brand they own.  Provided the deal is approved, it will result in a company with a broad product range, extended domestic and international customers reach and enhanced levels of functionality and expertise. As the professional video continues to consolidate around IT, specialist equipment and managed services, IHS believes there will be further major deals to come.

Geography
North America
Organization
Grass Valley
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