Belden buys Tripwire for $710m: Will keep network burglars out of Internet of Things things
Firm hopes to fatten bottom line
Signal transmission firm Belden has agreed to buy security tools firm Tripwire for $710m in cash.
The deal, announced Monday, is expected to close in the first quarter of 2015, subject to customary closing conditions.
Tripwire's security and compliance products, such as Tripwire Enterprise, will be further developed and marketed to industrial and broadcast markets as well as existing corporate clients. Tripwire's widely used technology helps clients detect, prevent and respond to myriad security threats.
Back in September, Belden and Tripwire announced a joint initiative to improve critical infrastructure cybersecurity in manufacturing organisations. Belden evidently liked the technology so much it decided to buy the privately held firm behind it.
"We look forward to incorporating Tripwire technology into selected Belden products and providing Tripwire with access to existing Belden customers that are anxious to improve the robustness and security of their networks," said John Stroup, president and chief exec of Belden in a statement.
"This positions Belden as a leader in helping customers deploy and secure the Internet of Things."
Belden, which makes everything from industrial networking equipment to enclosures, hopes to grow its bottom line by expanding into cyber-security through the Tripwire acquisition.
Belden expects to make money from the deal from the get-go, with an expected impact to adjusted income from continuing operations per diluted share of $0.65 in 2015 and more than $1.00 in 2017. ®