Belden has agreed to acquire OTN Systems, a provider of automation networking infrastructure solutions, for approximately $71 million.
The transaction is expected to close in the first quarter 2021.
The acquisition of the privately-held OTN Systems supports 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.
The deal will accelerate 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, said Roel Vestjens, president and CEO of Belden.
The acquisition of OTN Systems provides additional revenues of approximately $35 – $40 million in the first full year of ownership.
Headquartered in Olen, Belgium, OTN Systems is a provider of network solutions tailored for specific applications in harsh, mission-critical environments.
OTN Systems’ technology allows customers to build and monitor networks in industrial markets, such as process, power transmission, and mass transit. Belden and OTN Systems have a commercial partnership dating back to 2017.
Belden expects fourth quarter 2020 revenues to be $494 – $499 million, compared to prior guidance of $460 – $485 million. Belden now expects revenues to be $1.858 – $1.863 billion for the full year ending December 31, 2020, compared to prior guidance of $1.824 – $1.849 billion.