Electronic components maker Belden Inc. said Friday it agreed to buy Trapeze Networks, a maker of wireless local area network equipment and software for businesses, for $133 million in cash.
Belden said the deal will help build its position in the signal transmission market. Wireless offerings, Belden said, will extend the reach of the company's physical cable and connectivity products and allow it to "address the growing mobility needs of customers."
The company expects the acquisition to lower its adjusted earnings per share by 27 cents to 32 cents in 2008 and by 25 cents to 30 cents in 2009. It is expected to boost earnings in 2010 and beyond.
In April, the company forecast 2008 earnings between $3.45 and $3.65 per share on sales of $2.2 billion to $2.3 billion. The company now expects earnings of $3.15 to $3.35 per share. Its sales forecast remains unchanged.
Analysts, on average, are expecting a profit of $3.52 per share on sales of $2.26 billion, according to a poll by Thomson Financial.
Privately held Trapeze Networks, based in Pleasanton, Calif., had 2007 sales of $56 million, according to Belden.
Belden's shares fell $2.02, or 4.7 percent, to close at $40.63 as the broader market sank.
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