© jackie egginton Business | November 14, 2016

Belden makes an offer for Digi International

Belden has submitted a proposal to the board of directors of Digi International to acquire the company in an all-cash transaction valued at approximately USD 380 million.
Under the terms of the proposal, Digi shareholders would receive USD 13.82 in cash for each Digi share, representing a 35% premium over Digi’s trailing one month volume-weighted average price.

The offer represents an implied enterprise value of USD 242 million, representing a premium of 54% to Digi’s enterprise value of approximately USD 158 million on Thursday, November 10, 2016 and a 10x EBITDA multiple based on the high end of guidance provided by Digi to its shareholders on October 27, 2016.

Accodring to Belden, the addition of Digi to Belden’s Industrial IT platform would create a unique and broad portfolio of wireless and embedded solutions for customers across a number of vertical markets. Further, Digi would benefit from Belden’s business system which would provide access to new growth markets.

Belden says that it is prepared to engage in discussions immediately to work toward a successful completion of the proposed transaction. Although there can be no assurances a definitive agreement will be reached between the companies, Belden is committed to pursuing this transaction and will continue to update shareholders on our progress as appropriate.


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