Ciena buys Nortel's ethernet biz
Ciena has announced the acquisition of the optical and carrier Ethernet assets of Nortel’s Metro Ethernet Networks (MEN) business.
The $773.8 million, all cash acquisition will create the world’s largest supplier exclusively focused on converged optical Ethernet. The purchase price is subject to adjustment based upon the level of net working capital transferred to Ciena at closing, which is currently estimated to result in a downward adjustment to the aggregate purchase price of approximately $62 million.
"The acquisition of these assets accelerates Ciena’s overall strategy and gives us stronger operating leverage to continue investing in innovation that will allow us to deliver on our vision for next-generation networks," said Gary Smith, Ciena’s president and CEO. "With broader geographic reach, deeper customer relationships and a stronger portfolio of solutions, we’re confident that this acquisition positions Ciena for faster growth."
As part of the integration process, Ciena has selected a senior management for the new entity and extended leadership teams with new, defined their areas of responsibility and accountability. Ciena also said that most of Nortel MEN’s employees will be retained. Philippe Morin, previously president of Nortel MEN, has been appointed Ciena’s SVP, Global Products Group. The vision for the transformed product portfolio has been determined, and a comprehensive portfolio update will be announced March 22, 2010.
Smith said, "Staying true to our specialist roots, Ciena is now the only global supplier exclusively focused on converged optical Ethernet as a foundation for the next generation of service-and application-driven networks - creating a true industry leader."
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