MRV Communications Inc. will receive an additional $4.8 million for the sale of an Italy-based subsidiary, the company announced Monday.
The Chatsworth telecommunications components manufacturer will receive a total of $26.4 million for the sale of Tecnonet S.p.A., its network integration subsidiary based in Rome to Maticmind S.p.A., in Milan. The original purchase price had been about $21.5 million
The adjustment on the purchase price was based on changes in cash and debt of Tecnonet as provided for in the purchase agreement. The sale closed Dec. 3.
MRV Chief Executive Mark Bonney said the transaction achieved a very attractive valuation and as a result the company has a stronger balance sheet.
“We are entirely focused on the packet and optical solutions of our network equipment business that commands much higher margins and has more significant strategic and growth potential,” Bonney said in a prepared statement.
Shares closed up 22 cents, or more than 2 percent, to $11.15 on the Nasdaq.