MRV Closes Sale of Tecnonet S.p.A.

CHATSWORTH, Calif.--(BUSINESS WIRE)--MRV Communications (NASDAQ: MRVC), a global provider of packet and optical networking solutions, closed the sale of Tecnonet S.p.A., its Network Integration subsidiary based in Rome, Italy, to Maticmind S.p.A. based in Milan, Italy for the initial total consideration of €19.7 million or approximately $21.5 million. The 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. Within 60 days of closing, a post-closing adjustment will commence, based on changes in cash and debt of Tecnonet, as provided for in the purchase agreement.