Shares of MRV Communications Inc., a Chatsworth maker of computer networking and fiber optic products, soared on the news that computer chip maker Intel Corp. has agreed to invest in the company.
Intel plans to buy 200,000 newly issued MRV shares for $20 per share. It also has warrants to acquire 500,000 additional MRV shares at the same price if certain conditions are met.
Since the announcement on Wednesday, MRV's shares have risen $6.50 a share to $24 as of Monday's close.
The companies have been working together during the past year on computer network switching products.