MRV Announces Post-Closing Purchase Price Adjustment in MRV’s Favor on Sale of Tecnonet S.p.A.

CHATSWORTH, Calif.--(BUSINESS WIRE)--MRV Communications (NASDAQ: MRVC), a global provider of packet and optical networking solutions, announced it has agreed upon the post-closing adjustment with the buyer of Tecnonet S.p.A., and has received an additional €4.3 million payment, or approximately $4.8 million. On December 3, 2015, MRV closed the sale of Tecnonet, its Network Integration subsidiary based in Rome, Italy with Maticmind S.p.A. based in Milan, Italy for the initial total consideration of €19.7 million, or approximately $21.5 million, plus or minus a post-closing adjustment to be determined after closing. The initial consideration included a cash payment by Maticmind to MRV of €15.6 million received at closing plus cash payments made by Tecnonet to MRV, prior to closing that totaled €4.1 million to repay an intercompany obligation. The repayment was facilitated by third party debt acquired by Tecnonet and assumed at closing by Maticmind. With the post-closing purchase price adjustment, based on changes in cash and debt of Tecnonet as provided for in the purchase agreement, the total consideration received by MRV for the sale of Tecnonet amounted to €24.0, or approximately $26.4 million.