Belden Drops Acquisition Bid For Digi After Poor Earnings Results

Belden Inc. said Friday afternoon it was rescinding its bid for Digi International Inc. after the acquisition target reported poor results and forecast the day before. Belden announced an offer to buy the modem maker for $13.85 a share in November, but said it was rescinding that bid "in light of the fiscal second quarter 2017 results and full-year 2017 outlook reported by Digi." On Thursday, Digi reported that revenue decreased 9.6% year-over-year in the first half, while EBITDA dropped more than 26%. Digi's guidance no longer lived up to the EBITDA multiple Belden used to make the bid, Belden said. Digi, which closed with a 13% decline at $10.70 Friday after those results, dropped to $10.20 in late trading after the deal was officially called off.