MARTINSRIED/MUNICH, Germany and MAHWAH, New Jersey, Sept. 17, 2004 (PRIMEZONE) -- ADVA Optical Networking today announced that the acquisition of the remaining seventy percent (70%) ownership stake in Metro Packet Systems Inc. was successfully completed. The total number of newly-issued non-bearer shares for the acquisition of Metro Packet Systems was 872,093.
Metro Packet Systems possesses extensive knowledge and expertise in the area of carrier-class Ethernet technology, particularly systems targeted at metropolitan access networks and customer premise sites. Metro Packet Systems played an important role in the development of ADVA's Fiber Service Platform (FSP) 150 product lines, a new carrier-class native Ethernet access solution which was first launched in March 2004. This acquisition underscores ADVA's commitment to building up a second core business around Ethernet access solutions.
ADVA acquired the remaining seventy-percent stake for a total purchase price of approximately EUR 4.1 million. The purchase price was paid in 872,093 shares of common stock in ADVA via a capital increase and issued in exchange for all outstanding shares of Metro Packet Systems. The new total nominal capital amounts to EUR 34,100,910, which includes an additional capital increase in the amount of EUR 43,466 from the exercise of employee option bonds. A further cash earn-out position of up to EUR 4.5 million may be paid based upon achievement of specific sales targets in 2005 for products developed by Metro Packet Systems.