Just as it reports its first-quarter earnings, Belden has reached a deal to acquire Precision Optical Technologies for about $290 million in cash.
Precision Optical Technologies has established itself as a critical supplier of optical transceivers with proprietary software, firmware configurations, and related components.
The company’s products are core elements in fiber infrastructure deployments, expansions, and network upgrades, benefiting from multiple secular tailwinds. Precision Optical Technologies’ products complement Belden’s existing Enterprise Solutions products and will enhance our solutions offerings in key markets.
Precision Optical Technologies is expected to accrue to Belden’s adjusted earnings per share in the first year after the closing, excluding acquisition-related costs. Belden said it expects to complete the acquisition by the end of the second quarter of 2024 and is subject to certain regulatory approvals and other customary closing conditions.
Ashish Chand, Belden's President and CEO, views Precision’s fiber-based assets as a strategic move to further penetrate the carrier and enterprise markets, instilling confidence in its stakeholders about Belden's future growth.
“As networks are upgraded, and bandwidth demands increase, Precision Optical Technologies’ products will be critical components as fiber deployments accelerate,” he said. “Further, combined with Belden fiber and network products, our solutions teams will now have enhanced passive optical network (PON) components and sit deeper in the fiber network, allowing for additional use cases and opportunities with MSOs, telcos, data centers, and enterprise customers.”
Belden announced the acquisition of Precision as the company reported its first-quarter earnings.
The company reported that revenues for the quarter totaled $536 million, decreasing $106 million, or 17%, compared to $642 million in the year-ago period.
Driven primarily by lower market demand, revenues declined organically by 17%, with Industrial Automation Solutions down 17% and Enterprise Solutions down 18%. Net income was $37 million, compared to $63 million in the year-ago period.
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