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Ciena Acquires Nortel Ethernet Assets For $521 Million (CIEN)

Posted on: Wed, 07 Oct 2009 10:18:00 EDT

Symbols: CIEN

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Oct 07, 2009 (SmarTrend(R) News Watch via COMTEX) --
CIEN | Quote | Chart | News | PowerRating -- 10/7/2009-Ciena Corp. (NASDAQ:CIEN) announced Wednesday that it has agreed to buy substantially all of the Ethernet assets of Nortel's Metro Ethernet Networks (MEN) business for $390 million in cash and 10 million shares of Ciena common stock. According to Ciena's press release, the transaction "would strengthen Ciena's global presence and bring together complementary technologies in switching and transport that will offer customers a practical path for transitioning to automated, optical Ethernet-based networking." Based on Ciena's closing value on Tuesday, the aggregate value of the shares to be issued is $131 million, bringing the combined deal's total value to $521 million.

"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 " said Gary Smith, Ciena's CEO and president. "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."

Write to Chip Brian at cbrian@tradethetrend.com

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