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Belden to Acquire Thinklogical for $160M Cash - TvTechnology

Belden to Acquire Thinklogical for $160M Cash

Acquisition gives company entree into secure KVM market
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ST. LOUIS, MO.—Belden today announced that it has entered into a definitive agreement to acquire privately held Thinklogical from Boston-based private equity concern Riverside Partners for $160 million. The transaction will be financed with cash on hand and is expected to close in the second quarter 2017, subject to regulatory approvals and other closing conditions.

Belden said that among the highlights of the deal, it would “significantly” enhance Belden’s Broadcast Solutions platform “with one-of-a-kind, mission-critical solutions;” and gives Belden and entree into the secure KVM switching market.

It also adds Thinklogical’s numbers to the Belden balance sheet, and in 2016, Thinklogical generated $12 million in net income on $51 million in revenues for $17 million EBITDA, with accretive-to-GAAP earnings of around 4 cents and adjusted earnings per diluted share of around 27 cents in the first year of ownership.

Headquartered in Milford, Conn., Thinklogical is a developer and manufacturers of high-performance, fiber-optic-based video and switching equipment. The company’s products are used for real-time enterprise video management (including switching and transmission of high-quality video and peripheral signals) across a variety of end markets, including military, command and control, broadcast, etc.

“We are extremely excited to welcome the talented Thinklogical team to the Belden family,” said John Stroup, president, CEO, and chairman of Belden. “The business is uniquely well-positioned for success, given its numerous market growth drivers, industry-leading proprietary products, and difficult-to-obtain intelligence and defense accreditations. This is a very compelling opportunity for Belden that provides additional opportunities for profitable growth in our Broadcast Solutions platform.”