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ADVA Optical Networking announced its agreement to acquire Movaz Networks on June 6, 2006, and completed the acquisition on July 20, 2006. ADVA reported paying USD 6.0 million in cash and issuing 6,526,529 shares, with a conditional earn-out also possible. Movaz brought its WDM transport and ROADM technology, customer base and Atlanta operations into ADVA’s North American business.
When did ADVA acquire Movaz?
ADVA announced on June 6, 2006, that it had signed a definitive agreement to acquire privately held Movaz Networks. The announcement said the deal was subject to standard closing conditions and that ADVA expected it to close in July. ADVA confirmed completion on July 20, 2006.
Sources: ADVA’s June 6, 2006 announcement and ADVA’s July 20, 2006 closing announcement.
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What did ADVA pay for Movaz?
At closing, ADVA said it issued 6,526,529 common shares through a capital increase and paid USD 6.0 million in cash. The June announcement also described a conditional cash earn-out equivalent to 1.0 million ADVA shares, potentially payable within twelve months after closing. The earn-out was conditional; the available closing announcement confirms the shares issued and cash paid, but does not establish whether an earn-out was ultimately paid.
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What did Movaz make?
Founded in 2000 and based in Atlanta, Georgia, Movaz supplied wavelength-division multiplexing (WDM) equipment. Its RAY product line included WDM transport and reconfigurable optical add-drop multiplexing (ROADM) solutions. ADVA described the systems as suitable for networks ranging from small metro cores to regional networks as long as 2,000 km.
WDM carries multiple signals over a single optical fiber by using different wavelengths of light. A ROADM enables network operators to add, drop or redirect wavelengths at nodes in an optical network. Movaz’s products therefore added optical transport and network-routing capabilities to ADVA’s portfolio; this description reflects the product categories in ADVA’s 2006 announcement, not a claim about present-day product availability.
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Why did ADVA buy Movaz?
ADVA said Movaz would complement its Fiber Service Platform (FSP) portfolio and significantly strengthen its business traction in the Americas. The company presented the acquisition as both a product fit and a way to expand its North American presence.
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ADVA also forecast that the acquisition would be accretive to U.S. GAAP earnings per share from mid-2007. That was the company’s forecast when it announced the deal; the announcement alone does not establish whether the projected result occurred.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How were Movaz’s people and operations integrated?
ADVA said a majority of Movaz’s approximately 150 employees would join its North American organization. It also planned to use Movaz’s Atlanta facilities as an additional distribution and engineering site. These were integration plans stated at announcement, rather than evidence here of the eventual staffing or site outcomes.
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A contemporaneous EE Times report interpreted Movaz’s eROADM as the basis for an intended hybrid ROADM offering from ADVA, and discussed the relevance of Movaz’s fixed OADM and full-size ROADM products. That product-strategy framing is EE Times’ account, distinct from ADVA’s own stated rationale.
What happened to Movaz’s RAY products?
In an October 23, 2006 customer-network announcement, ADVA referred to the RAYexpress line under the name FSP 3000RE. This provides a contemporaneous example of a Movaz product line being associated with ADVA’s FSP branding; the available information does not establish the full subsequent lifecycle or current availability of Movaz-derived products.
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