MRV Communications to Sell Source Photonics to Francisco Partners

By Anil Sharma, TMCnet Contributor

MRV Communications, Inc., a provider of optical communications solutions and services, has executed a definitive agreement with Francisco Partners, a global technology-focused private equity fund, in which Francisco Partners acquired Source (News - Alert) Photonics, Inc., MRV's optical communications components business unit.

Source Photonics is a provider of optical communication products used in telecommunication systems and data communication networks.

Source Photonics designs, manufactures, and sells a broad portfolio of optical communication products, including passive optical network, or PON, subsystems, optical transceivers used in the enterprise, access, and metropolitan segments of the market, as well as other optical components, modules and subsystems.

The transaction is valued at approximately $146 million (including $113 million in cash, $33 million in assumed debt and certain deductions set forth in the purchase agreement).

"This transaction illustrates our strategic shift away from fiber optic components and our increased emphasis on providing optical networking products, services and solutions,” said Dilip Singh, chief executive officer with MRV (News - Alert), in a statement.

Singh said that, moreover, this transaction will help stabilize revenue and operating income, allowing the company to concentrate on maintaining steady cash flows from the core business units and growing the business to meet customer demand.

MRV remains a provider of network infrastructure equipment and network management products, as well as network integration and managed services. These products and services include optical transport and WDM solutions, optical carrier Ethernet access, and infrastructure management and services for high-speed carrier and enterprise networks.

“After a comprehensive evaluation of the strategic alternatives available for Source Photonics, we believe this transaction is the best option to maximize long-term value for MRV shareholders,” said Singh.

He said that Source Photonics will continue normal operations while benefiting from Francisco's expertise in the technology and telecommunications industries.

“On behalf of MRV, I would like to thank all of the employees who contributed to the growth of Source Photonics and I wish them future success," said Singh.

(source: http://10-gigabit-ethernet.tmcnet.com/topics/10-gigabit-ethernet/articles/111946-mrv-communications-sell-source-photonics-francisco-partners.htm)