ADVA Optical Networking agreed to acquire privately-held Movaz Networks, a supplier of WDM transport and Reconfigurable Optical Add-Drop Multiplexing (ROADM) solutions.
Movaz has approximately 100 customers comprised of telecommunications carriers, cable network providers, research and educational organizations and government agencies. This customer base is served by a three pronged distribution strategy that includes direct sales, a private label partnership agreement with Lucent and several value added resellers.
Under the terms of the agreement, 6,526,529 shares of ADVA common stock will be issued via a capital increase and a cash component of approximately USD 6.0 million will be paid. In addition, a cash earn-out component equivalent to 1.0 million ADVA shares could become payable within twelve months after closing under certain conditions.
A majority of Movaz’s currently about 150 employees will be fully integrated into ADVA’s North American organization and their Atlanta facilities will become an additional ADVA distribution and engineering site.
“The acquisition of Movaz will expand ADVA’s North American customer base, global product portfolio and optical engineering resources. Their RAY product portfolio includes two ROADM solutions that enable dynamic networking with unparalleled functionality and cost points – exactly what customers are looking for today. The Movaz distribution partnerships, sales force and substantial U.S. customer base combine extremely well with ADVA’s. They will increase our leading position as a supplier of Optical+Ethernet solutions globally, which reflects the core of our strategy,” said Brian L. Protiva, ADVA’s chief executive officer.
http://www.movaz.comhttp://www.advaoptical.com
- In May 2006, Lucent Technologies and Movaz Networks have expanded an existing agreement under which the two companies are delivering metro DWDM networks to service providers worldwide. The partnership brings together Lucent’s Metropolis Wavelength Services Manager (WSM) and Movaz’ RAYexpress optical platform. Under the expanded agreement, Lucent will manage elements of Movaz’s supply chain operations, including key component purchases, product manufacturing, and customer delivery requirements. Under the auspices of this relationship, Lucent introduced its Metropolis WSM product in 2004, and is currently supporting deployments with operators worldwide, including recently announced agreements with the U.S. Army and Taiwan Mobile.
- In January 2006, Movaz Networks announced the closing of $20 million in equity financing with an additional line of credit for $12 million, supporting its optical networking solutions. At the time, Movaz said it had 90 customers around the world and over 4,000 nodes currently in service.
- Olympus Corporation and Movaz Networks have established a joint venture company to provide Micro Electro-Mechanical Systems (MEMS) based technologies and products for optical equipment suppliers worldwide. The first jointly developed product, a MEMS-based Wavelength Selective Switch (WSS) for Reconfigurable Optical Add Drop Modules (ROADM), has been deployed since last August in Movaz’s Multi-Degree RAY ROADM network to provide extended reach to key government and university sites including the NASA Goddard Space Flight Center, the Mid-Atlantic Crossroads (MAX), and the National Lambda Rail. Olympus Microsystems America, Inc. will also develop business for new products, technology, and markets with a focus on MEMS-based activities including ROADM products, variable optical attenuators (VOA), small switches, optical cross connects (OXC), aspheric lenses, and tunable filters.
- In October 2005, ADVA Optical Networking agreed to acquire Covaro Networks, a start-up offering Ethernet demarcation products, for approximately $24 million in stock and cash. Covaro, which is based in Richardson, Texas, developed a line of products that enable service providers to offer intelligent Ethernet services over fiber, copper, SONET/SDH, DS3/DS1 and E3/E1. Covaro’s “Etherjack” technology allows carriers (or enterprises) to transport and manage Ethernet services using traditional management methods for T1/T3 services.