- CUI Global Retains Investment in Virtual Power Systems
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TUALATIN, Ore. and JERSEY CITY, N.J., Nov.
11, 2019 /PRNewswire/ -- CUI Global, Inc. (Nasdaq: CUI)
("CUI Global") and Bel Fuse Inc. (Nasdaq: BELFA and Nasdaq: BELFB)
("Bel") today announced that the two companies have entered into an
asset purchase agreement (the "Agreement") under which CUI Global
will sell the majority of its Power business (the "CUI Power
Business") to Bel for $32.0 million,
plus the assumption of certain liabilities and subject to closing
working capital adjustments. The CUI Power Business is a
division within CUI Global's Power and Electromechanical
("P&EM") segment.
Excluded from the Agreement is CUI Global's approximate 20%
equity interest in Virtual Power Systems (VPS) related to the
Intelligent Control of Energy® (ICE) product line for data centers
based on VPS' proprietary Software Defined Power® (SDP)
infrastructure.
Jim O'Neil, CEO of CUI Global,
stated, "This transaction unlocks the substantial value in our
P&EM segment and is an important step in our transformation
into a diversified energy services platform that is grounded in our
existing product portfolio and gas infrastructure capabilities.
With this divestiture behind us, we move forward with an aggressive
and disciplined acquisition strategy to tap into secular demand
trends in the electric power, oil and gas, and telecommunication
infrastructure industries for long-term shareholder value
creation."
Daniel Bernstein, CEO of Bel,
said, "The CUI Power Business' extensive product portfolio and
distribution channel fits squarely within our growth strategy.
Their product portfolio will round out Bel's current Power Products
offering, allowing us to better address all our customer power
needs. In addition, we look forward to utilizing CUI's
success with the electronic catalog distributors throughout
the BelCinch product groups and capitalizing on CUI's enviable
strong relationship with these distributors. Electronic Catalog
Distributors are playing a vital role in demand creation, and over
the past 4 years this segment has been our fastest growing
business. The combination of Bel and the CUI Power Business will
substantially strengthen our Power Group and unite complementary
capabilities, sales channels and customer relationships.
B. Riley FBR, Inc. acted as exclusive financial advisor to CUI
Global in this transaction.
About CUI Global, Inc.
Delivering Innovative Technologies for an Interconnected
World . . . . .
CUI Global, Inc. is a publicly traded company dedicated to
maximizing shareholder value through the acquisition and
development of innovative companies to create a diversified energy
services platform. CUI Global's Energy business, Orbital Gas
Systems is a leader in innovative gas solutions with more than 30
years of experience in design, installation and the commissioning
of industrial gas sampling, measurement and delivery systems
providing solutions to the energy, power and processing
markets. Orbital Gas Systems manufactures and delivers a
broad range of technologies including environmental monitoring, gas
metering, process control, telemetry, gas sampling and BioMethane.
As a publicly traded company, shareholders can participate in the
opportunities, revenues, and profits generated by the products,
technologies, and market channels of CUI Global and its
subsidiaries. But most important, a commitment to conduct business
with a high level of integrity, respect, and philanthropic
dedication allows the organization to make a difference in the
lives of their customers, employees, investors and global
community.
For more information please
visit: http://www.cuiglobal.com
About Bel
Bel (www.belfuse.com) designs, manufactures and markets a broad
array of products that power, protect and connect electronic
circuits. These products are primarily used in the networking,
telecommunications, computing, military, aerospace, transportation
and broadcasting industries. Bel's product groups include Magnetic
Solutions (integrated connector modules, power transformers, power
inductors and discrete components), Power Solutions and
Protection (front-end, board-mount and industrial power products,
module products and circuit protection), and Connectivity Solutions
(expanded beam fiber optic, copper-based, RF and RJ connectors and
cable assemblies). The Company operates facilities around the
world.
Important Cautions Regarding Forward Looking
Statements
This document contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Such statements are subject to risks and uncertainties that could
cause actual results to vary materially from those projected in the
forward-looking statements. The Company may experience significant
fluctuations in future operating results due to a number of
economic, competitive, and other factors, including, among other
things, our reliance on third-party manufacturers and suppliers,
government agency budgetary and political constraints, new or
increased competition, changes in market demand, and the
performance or reliability of our products. These factors and
others could cause operating results to vary significantly from
those in prior periods, and those projected in forward-looking
statements. Additional information with respect to these and other
factors, which could materially affect the Company and its
operations, are included in certain forms the Company has filed
with the Securities and Exchange Commission.
CUI Global External Investor Relations Counsel:
LHA
Investor Relations
Sanjay M. Hurry
T: 212-838-3777
cuiglobal@lhai.com
Bel Investor Relations Contact:
Darrow Associates
Peter Seltzberg, Managing
Director
T: 516-419-9915
pseltzberg@darrowir.com
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