There was some merger news from the vendor space over the weekend. ADVA Optical Networking has entered into a definitive agreement to buy MRV Communications.
MRV Communications is based out in California and has a foothold over in Israel as well. Like ADVA, the company focuses on optical transport, Ethernet, and the software to make it all work. MRV had $80.3M in revenue last year and posted $21.2M for the first quarter of 2017.
It's ADVA Optical's biggest inorganic move since it purchased Overture in the first quarter of 2016, a company which had also been making inroads into the NFV space. Like that deal, a big part of the driving force was bringing some of that software talent together under one roof. It also further expands ADVA's customer base outside of Europe, which is another key driver.
The purchase price was $10 per share, which works out to some $69M. The deal has been approved by both boards of directors and, assuming all goes well, is expected to be completed in August or September.
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