ADVA Optical Networking Agrees to Buy MRV Communications
ADVA Optical Networking (FSE: ADV) says it has signed an agreement to purchase MRV Communications, Inc. (NASDAQ: MRVC). The German company will offer $10.00 for each share of MRV's outstanding common stock, for a total purchase price of $69 million. The deal, which ADVA hopes to close in either August or September of this year, has been approved and unanimously recommended by the board of directors of the two companies.
Both companies supply optical transport and Carrier Ethernet systems as well as advanced software, and the two market to cable operators (see, for example, "MRV Participates in CableLabs DPoE Interop" and "Second CableLabs DPoE Interop Draws 13 Suppliers"). MRV is perhaps best known for its OptiDriver line of optical transport systems, OptiSwitch Carrier Ethernet access hardware, and OptiPacket metro service edge platforms. The company also has researched network functions virtualization (see "MRV, Sandvine Teaming on Virtual CPE Demo") ADVA CEO Brian Protiva says that in addition to advancing his company's portfolio in certain areas, particularly metro access equipment, the deal will extend ADVA's customer base in Asia Pacific and North America, including some Tier 1 carriers.
Protiva believes ADVA will receive great value for the money, given the fact that MRV ended its fiscal 2016 with revenues of $80.3 million. For the quarter ended March 31, 2017, MRV reported revenues of $21.2 million, cash and cash equivalents of $21.7 million, and no debt. Protiva says he will fund the acquisition through debt, which he says is available at extremely low interest rates in Germany.
About the Author
Stephen Hardy
Editorial Director & Associate Publisher
Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.
Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.
He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, DOCSIS technology, and more.