Meriton Acquires Mahi Networks
And now for something
completely different from the telecom equipment supplier market - consolidation in
the form of a deal between two non-tier 1 suppliers. Meriton Networks,
which jumped into the spotlight earlier this year by snagging part of
BT's $19-billion next-generation network contract, is acquiring Mahi
Networks. While terms of the deal were not disclosed, it can't be too
rich given Mahi had sales of $5 million. What's particularly
interesting about the deal is Mahi had raised more than $375-million in
venture capital but re-loaded strategically last year after acquiring
Photuris Inc. at the same time it completed a $70-million private
equity exercise. This is clearly a case where the VCs involved with
Meriton and Mahi, particularly Mahi, are hoping one plus one equals
three as the fast-growing metro optical market continues to gain
momentum. When Meriton said last week it was making a major
announcement, my first reaction was it was being acquired - possibly by
Nortel. Meriton said the Mahi deal will accelerate its plans by 12 to
18 months, including a possible IPO.
