In a notable example of the ongoing consolidation in the broadcast technology sector, Belden has submitted a binding offer to purchase privately held Grass Valley for $220 million.
Grass Valley, which is one of the largest suppliers of broadcast technology, is currently owned by San Francisco-based private equity firm Francisco Partners. It bought the vendor in 2010 for $100 million.
When the deal is completed, Belden plans to combine Grass Valley with Miranda, which Belden acquired in 2012 for $345 million.
The move reflects an ongoing consolidation in the broadcast technology sector that has produced a number of deals in the last two years.
This consolidation comes at a time when a slew of deals in the TV station sector has produced larger groups that are looking to deal with fewer vendors that can provide a full range of products as a way of reducing tech costs.
As previously reported, consolidation is also being fueled by a move to broadcast infrastructures that are more heavily based on software and inexpensive IP and IT based hardware, rather than the more expensive hardware traditionally supplied by broadcast vendors.
“We are extremely excited to have Grass Valley join the Belden family,” explained John Stroup, president and CEO of Belden Inc. in a statement. “By combining Grass Valley and Miranda, we will create the broadcast industry’s largest and most complete portfolio.”
