CUI Global, Inc. has announced it will sell the majority of its power business to Bel for $32.0 million. The CUI Power Business is a division within CUI Global's Power and Electromechanical segment.
CUI Global will retain its 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, said in a statement, "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 Bel\Cinch 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.”