Belden snaps up Trapeze for $133m
Published: 10 Jun 2008 10:53 BST
On Friday, cable supplier Belden announced its intention to buy Trapeze for $133m (£68m) in cash, adding a wireless dimension for the first time to Belden's business.
"Belden's strategic vision is to provide the best signal transmission solutions to our customers, regardless of technology," said the company's president and chief executive, John Stroup, who added that Belden was now "the world's largest unified wired and wireless solutions provider".
Should the deal go through, Belden's purchase of Trapeze could be considered something of a bargain, as Trapeze had revenues of $56m last year and estimated $70m in revenues for 2008.
Jim Vogt, Trapeze's president and chief executive, said the company's customers could "now be assured of continued product innovation and new capabilities from the combined resources of Belden and Trapeze".
However, one of Trapeze's rivals, Aruba Networks, was quick to offer a way out for any Trapeze customers — or those of Trapeze's manufacturer partners, such as Nortel, 3Com and Enterasys — who might feel uneasy at the purchase of their supplier.
According to a statement from Aruba subsidiary AMP Solutions, a new programme has been put in place that "extends preferential pricing to existing Trapeze customers who transition to the AMP Wireless Management Suite 6", a multi-vendor network-management software package.
Pending regulatory approval, the deal between Belden and Trapeze is expected to close within a month of the announcement.
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