MARTINSRIED/MUNICH, Germany and MAHWAH, New Jersey, June 5, 2006 (PRIMEZONE) -- ADVA Optical Networking today announced the signing of a definitive agreement to acquire privately-held Movaz Networks Inc. Movaz is a leading Wavelength Division Multiplexing (WDM) equipment provider founded in 2000 and based in Atlanta, Georgia, USA. The Movaz RAYTM product line is a portfolio of WDM transport and Reconfigurable Optical Add-Drop Multiplexing (ROADM) solutions that economically scale from small metro core to regional networks as large as 2,000 km.
Movaz has an installation base of nearly USD 150 million across 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. Movaz will provide a strong complement to ADVA's Fiber Service Platform (FSP) solution portfolio and will significantly enhance ADVA's business traction in the Americas.
Under the terms of the agreement, ADVA will acquire all outstanding shares and options of Movaz via a combination of shares and cash. 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. The acquisition is subject to various standard closing conditions and is expected to close in July 2006. Half of the newly to-be-issued shares will be tradable immediately upon issuance, and half six months thereafter.
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. On a U.S. GAAP basis, ADVA expects earnings per share accretion from mid-2007 onwards.
More information on Movaz Networks can be found on the web at www.movaz.com.
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ADVA AG Optical Networking, Martinsried/Munich and Meiningen, Germany ADVA Optical Networking Inc., Mahwah, New Jersey, USA ADVA Optical Networking Corp., Tokyo, Japan www.advaoptical.com