The sale, which came out of the company’s Power & Electromechanical (P&EM) segment, notably does not include the company’s roughly 20% stake in Virtual Power Systems related to that company's Intelligent Control of Energy software platform.
Following the deal, shares of CUI rocketed 21% higher to $0.86 on Monday.
"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,” CUI CEO Jim O’Neil said in a statement.
“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," O’Neil added.
The decision is part of a larger shift by CUI to transform the structure of its company. Last month, it announced the sale of its electromechanical business for $15 million, which also came out of the P&EM segment.
Bel Fuse, based in New Jersey, designs and manufactures products that power and protect electrical circuits in telecommunications, transportation and other industries.
"The CUI Power Business' extensive product portfolio and distribution channel fits squarely within our growth strategy,” Bel CEO Daniel Bernstein said. “Their product portfolio will round out Bel's current Power Products offering, allowing us to better address all our customer power needs."
—Updated to include closing price—
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