ADVA Optical to acquire MRV Communications in $69m deal

ADVA Optical Networking has entered into a definitive agreement to acquire MRV Communications in a deal valued at $69 million.

Under the terms of the agreement, ADVA will make a tender offer of $10 per share for all the outstanding common stock of MRV. The offer has been approved and unanimously recommended by the board of directors of both companies.

ADVA said the acquisition will further strengthen its portfolio of optical, Ethernet and software solutions and expand its customer base, especially in non–European regions.

MRV specializes in network solutions for data center operators, service providers and enterprises, and last year recorded revenues of $80.3 million. For the quarter ending March 31, 2017, MRV reported revenues of $21.2 million, cash and cash equivalents of $21.7 million and listed no debt.

“There’s a strong synergy between our two companies,” said ADVA CEO Brian Protiva. MRV Communications’ 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.”

The deal is subject to customary conditions and is expected to be completed in August or September of this year.

If it goes through, the deal will be ADVA’s second significant acquisition in as many years. Last year, the company acquired Overture Networks for $35 million to strengthen its Carrier Ethernet portfolio and create its “Ensemble” NFV product suite. ADVA struck a deal with Verizon earlier this year to deploy Ensemble for the operator’s virtual uCPE solution.

“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,” said ADVA Optical CFO Uli Dopfer. “To continue to exceed customer expectations and outperform network demands, we must use every possible advantage. Our acquisition of MRV … will help us to do this. It not only strengthens our cloud access portfolio, but it also opens the door to new customers [and] present many new business opportunities, especially for communication service providers who are seeking to explore the possibilities of virtualized network services.”