ADVA Optical Networking to acquire MRV Communications for $69M
The offer equates to a purchase price of $69 million dollars and has been approved and unanimously recommended.
Optical telecommunications company ADVA Optical Networking (Martinsried/Munich, Germany) has entered into a definitive agreement to acquire MRV Communications (Chatsworth, CA). Under the terms of the agreement, ADVA Optical Networking will make a tender offer of $10 dollars per share for all the outstanding common stock of the provider of network solutions for datacenter operators, service providers, and enterprises. The offer equates to an aggregate purchase price of $69 million dollars and has been approved and unanimously recommended by both the board of directors of ADVA Optical Networking and the board of directors of MRV Communications.
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The acquisition is subject to customary closing conditions, including the tender of at least a majority of MRV Communications outstanding shares of common stock. If successful, the acquisition will further strengthen ADVA Optical Networking's portfolio of optical, Ethernet, and software solutions and expand its customer base, especially in non-European regions. In 2016, MRV Communications recorded revenues of $80.3 million. For the quarter ending March 31, 2017, MRV Communications reported revenues of $21.2 million, cash and cash equivalents of $21.7 million and listed no debt.
"MRV Communications, Inc. is a company that shares many of our values. It's a company that has built a strong reputation focused on customer success and satisfaction. Over 29 years, it has driven some key innovations and played an important role in shaping our industry," said Brian Protiva, CEO, ADVA Optical Networking. "That's why we signed a definitive agreement to acquire it today. We believe there's a strong synergy between our two companies. MRV Communications, Inc.'s technology and talent will strengthen our own product set and help us to deliver even more value to our customers. Our combined teams present the marketplace with an incredibly compelling skill set and technology base."
ADVA Optical Networking’s acquisition of MRV Communications, Inc. will, if completed, be the second significant acquisition it has made in as many years. In 2016, the company acquired Overture Networks to strengthen its Carrier Ethernet portfolio. ADVA Optical Networking saw record Q1 revenues in April 2017. ADVA Optical Networking's acquisition of MRV Communications is subject to customary conditions and is expected to be completed in August or September of 2017.
"The networking industry is experiencing one of the most exciting and tumultuous phases in its history. The pace of innovation has never been faster or more demanding. To continue to exceed customer expectations and outperform network demands, we must use every possible advantage," said Uli Dopfer, CFO, ADVA Optical Networking. "Our acquisition of MRV Communications, Inc. will help us to do this. It not only strengthens our cloud access portfolio, but it also opens the door to new customers. There can be no question that this acquisition will present many new business opportunities, especially for communication service providers who are seeking to explore the possibilities of virtualized network services."