(Source: Datamonitor)
Ciena, a provider of communications networking equipment, software and services, has entered into agreements with Nortel to purchase substantially all of the optical networking and carrier ethernet assets of Nortel's Metro Ethernet Networks business for $390 million in cash and 10 million shares of Ciena common stock.
The product and technology assets to be acquired include: Nortel's long-haul optical transport portfolio; metro optical ethernet switching and transport solutions; ethernet transport, aggregation and switching technology; multiservice SONET/SDH product families; and network management software products.
The transaction is also subject to customary closing conditions, including receipt of necessary regulatory approvals.
Gary Smith, CEO and president of Ciena, said: "This is a unique and exciting opportunity for us to accelerate our existing strategy and the pace of our growth plans by two to three years. We believe this transaction will position us for faster growth by giving us greater geographic reach, broader customer relationships and a deeper portfolio of solutions. We believe we are best positioned to leverage these assets, thereby creating a significant challenger to traditional network vendors."
A service of YellowBrix, Inc.
