Bel Fuse acquires dataMate ethernet business for $16 million

Bel Fuse Inc. (NASDAQ: BELFA and BELFB) announced the acquisition of dataMate, an ethernet and broadband technology provider, from Methode Electronics Inc. for $16 million, including $1 million of deferred consideration.

The acquired business generates approximately $18 million in annual sales with operating margins aligned with Bel's corporate averages. The company stated the acquisition is expected to be immediately accretive to its financials.

DataMate provides ethernet and broadband solutions for networking, data centers, industrial automation, smart building management, and broadband deployment markets. The acquisition adds complementary products to Bel's existing Magnetic Solutions offerings.

The transaction expands Bel's U.S.-based manufacturing capabilities, including research and development, sales and product management functions. DataMate's technology development includes innovations designed to deliver data and power through single wire pairs for industrial and smart building applications.

"The acquisition of dataMate is expected to expand Bel's leadership in networking solutions," said Joe Berry, President of the Magnetics Division at Bel. "The innovative technologies and talented engineering team will enable Bel to deliver even greater value to our customers and accelerate growth in key markets."

Bel funded the initial $15 million consideration through cash on hand and borrowings from its existing revolving credit facility. Northland Capital Markets served as financial advisor and Katten Muchin Rosenman provided legal counsel for the transaction.

The information is based on a company press release statement.

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