Whittaker Aerospace Firm to Sell Xyplex Unit

MRV Communications has said it will buy Xyplex Inc., a unit of Whittaker Corp., to expand into the wide-area computer networking and remote-access service markets.

Whittaker, an aerospace engineering company based in Simi Valley, will sell Xyplex for $35 million in cash, plus warrants to purchase up to 500,000 shares of Chatsworth-based MRV at $35 a share.

“Xyplex has a very strong product line in wide-area networking and remote access, as well as an excellent reputation for quality and customer service,” said Noam Lotan, MRV president and chief executive. “Our product line is in local-area networks, so by joining together, we’re hoping to be able to offer one-step shopping to our customers.”

MRV has been hurt in recent months by the Asian financial crisis. The company hopes the purchase of Xyplex will improve its stock performance.

Lotan said the acquisition will strengthen the company, especially in research and development.

The sale represents the last stage in Whittaker’s plan to streamline the company and focus its efforts on aerospace.

“We’re not in the communications business,” said Joseph Alibrandi, Whittaker chairman and chief executive. “Our strength is in the aerospace market, and that’s where we should focus our efforts.”

Whittaker designs and builds airplane control devices. Its customers include Boeing Co., General Electric Co., the Pratt & Whitney unit of United Technologies Inc. and Airbus Industrie.

The Xyplex sale is subject to regulatory approval and is expected to close by March 1.