NEW YORK (TheStreet) -- Belden (BDC) shares are up 9.36% to $81.93 in early market trading on Wednesday after the networking and cable products manufacturer announced that it has signed a definitive agreement to acquire cybersecurity firm Tripwire for $710 million.
The company said that the acquisition will add 65 cents to its adjusted income from continuing operations in 2015. The companies had previously worked together in September to improve infrastructure cybersecurity in manufacturing organizations.
Belden said that the combined companies will provide cybersecurity solutions to the industrial and broadcast markets with the deal expected to be completed in the first quarter of 2015.
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TheStreet Ratings team rates BELDEN INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate BELDEN INC (BDC) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, expanding profit margins, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."