Thursday, January 25, 2007

MRV to Acquire Fiberxon and Take Luminent Public

MRV Communications announced plans to acquire Fiberxon, a supplier of transceivers for Metro, Access, and PON applications, for approximately $131 million in a combination of cash and stock.

Following the closing of the transaction, MRV intends on combining Fiberxon with Luminent, its wholly-owned subsidiary, which also supplies metro transceivers and transceivers for fiber-to-the- premise (FTTP) deployments.

MRV then plans an initial public offering (IPO) of shares in Luminent.

The proposed public offering by Luminent will not occur until after MRV completes the Fiberxon acquisition, Inc., which is expected during the first half of 2007. The company said the actual timing of the offering and whether Luminent undertakes it in 2007 or 2008 will depend on a number of factors, including the general condition of the securities markets.

Fiberxon is based in Santa Clara, California, and has product development and manufacturing facilities in Shenzhen and Chengdu, China. The company supplies a broad portfolio of metro, access, EPON and GPON transceivers.
According to Fiberxon, its unaudited 2006 revenues are expected to be in the range of $45 to $48 million.

Luminent, with facilities in Chatsworth, California and Hsinchu, Taiwan, has pioneered the field of triplexer transceivers for video, voice and data triple play service. The company is a leading supplier of optical transceivers for BPON FTTP deployments with over 1 million units shipped to date. Luminent has also shipped over 100,000 GPON transceivers globally in 2006.

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