Adva moves to buy MRV Communications for $69m
Optical networking company CEO Brian Protiva makes agreed bid to acquire Californian company MRV
Adva Optical Networking has made an agreed $69 million bid to acquire Californian group MRV Communications, which specialises in network equipment for data centres.
The deal – described as “a definitive agreement” – is backed by the boards of both companies but is still subject to approval by the two companies’ shareholders.
MRV “has built a strong reputation focused on customer success and satisfaction”, said Adva CEO Brian Protiva. “Over 29 years, it has driven some key innovations and played an important role in shaping our industry.”
Adva said this morning that “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”.
Nasdaq-listed MRV is based in Chatsworth, California, just outside Los Angeles, and has R&D centres in the US and Israel. Adva was founded in Germany in 1984 and has been quoted on the Frankfurt stock exchange since 1999. It has spent around €300 million on acquisitions since 2000, most recently $35 million on Overture Networks in early 2016.
Protiva said of the MRV deal that he believes “there’s a strong synergy between our two companies”. He said MRV’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 says it is expecting a quick deal to buy MRV, which had revenues last year of $80.3 million. It hopes for completion in August or September.