Acquisitions

6 Months Ended

Jun. 29, 2025

Business Combination, Asset Acquisition, Transaction between Entities under Common Control, and Joint Venture Formation [Abstract]

Acquisitions

Acquisitions

On June 30, 2024, we acquired Precision Optical Technologies (Precision) and accounted for it as a business combination. During the six months ended June 29, 2025, we received $7.9 million related to an adjustment of the consideration paid. Including this adjustment, the total consideration paid for Precision, net of cash acquired, was $281.7 million and was funded with cash on hand. Precision, based in New York, is a leading supplier of value-added optical transceivers with proprietary software, firmware configurations, and related components. Precision is reported within the Smart Infrastructure Solutions segment.

The following table summarizes the fair values of the assets acquired and liabilities assumed for Precision as of the acquisition date (in thousands):

Receivables	$	23,928
Inventory	7,098
Other current assets	1,486
Property, plant and equipment	4,737
Intangible assets	194,100
Goodwill	114,629
Operating lease right-of-use assets	2,731
Total assets acquired	$	348,709
Accounts payable	$	11,662
Accrued liabilities	10,093
Deferred income taxes	42,551
Long-term operating lease liabilities	2,468
Other long-term liabilities	222
Total liabilities assumed	$	66,996
Net assets	$	281,713

The fair value of acquired receivables is $23.9 million, which is equivalent to its gross contractual amount. A single estimate of fair value results from a complex series of judgments about future events and uncertainties and relies heavily on estimates and assumptions. If actual results are materially different than the assumptions we used to determine fair value of the assets and liabilities acquired, it is possible that adjustments to the carrying values of such assets and liabilities will have an impact on our net earnings. In particular, the valuation of the customer relationships intangible asset was complex and required significant judgment. We used the multi-period excess earnings method under the income approach to measure the customer relationships intangible asset. The key assumptions utilized in the valuation include discount rates, revenue growth rates, and profitability levels of forecasted results. These assumptions are forward-looking and could be affected by future economic and market conditions. For purposes of the above allocation, we based our estimate of the fair values for intangible assets on valuation studies performed by a third party valuation firm. We used various valuation methods including lost income, excess earnings, and relief from royalty to estimate the fair value of the identifiable intangible assets (Level 3 valuation). Goodwill and other intangible assets reflected above were determined to meet the criteria for recognition apart from tangible assets acquired and liabilities assumed. The goodwill is primarily attributable to the expansion of Belden’s solution selling capabilities, particularly the ability to offer more complete fiber infrastructure solutions. Our tax basis in the acquired goodwill is zero.

The intangible assets related to the acquisition consisted of the following:

	Fair Value		Amortization Period
	(In thousands)		(In years)
Intangible assets subject to amortization:
Developed technologies	$	24,700	5.0
Customer relationships	161,900		20.0
Trademarks	3,000		2.5
Non-compete agreements	4,500		5.0
Total intangible assets subject to amortization	$	194,100
Intangible assets not subject to amortization:
Goodwill	$	114,629	n/a
Total intangible assets not subject to amortization	$	114,629
Total intangible assets	$	308,729
Weighted average amortization period			17.5

The amortizable intangible assets reflected in the table above were determined by us to have finite lives. The useful life for the developed technology intangible asset was based on the estimated time that the technology provides us with a competitive advantage and thus approximates the period and pattern of consumption of the intangible asset. The useful life for the customer relationship intangible asset was based on our forecasts of estimated sales from recurring customers. The useful life for the trademarks was based on the period of time we expect to continue to go to market using the trademarks.

The following table illustrates the unaudited pro forma effect on operating results as if the Precision acquisition had been completed as of January 1, 2023.

	Three Months Ended		Six Months Ended
	June 30, 2024		June 30, 2024
	(In thousands, except per share data)
	(Unaudited)
Revenues	$	636,138	$	1,210,852
Net income attributable to Belden stockholders	46,626		82,018
Diluted income per share attributable to Belden stockholders	$	1.13	$	1.98

The above unaudited pro forma financial information is presented for informational purposes only and does not purport to represent what our results of operations would have been had we completed the acquisition on the date assumed, nor is it necessarily indicative of the results that may be expected in future periods. Pro forma adjustments exclude cost savings from any synergies resulting from the acquisition.