Thursday, May 14, 2015

Ciena Acquires Cyan, A Network Solutions Provider

Image Credit: TelecomLead
Hanover-based networking technology company Ciena Corp. said on Monday that it has agreed to acquire network solutions provider Cyan in a cash and stock deal valued at $400 million.

The deal would give Ciena the ability to sell customers software systems used to operate large networks, along with its fiber-optic networking gears. It will also strengthen Ciena's portfolio of software defined networking and network functions virtualization technologies.

Under the terms of the deal, Cyan shareholders will receive stock and cash equal to 0.224 shares of Ciena common stock, or about $4.75 per share. In addition, Ciena will assume Cyan's $50 million in outstanding 8 percent convertible senior secured notes due 2019. The $4.75 per-share bid for Cyan represents a 30 percent premium to Cyan's Friday closing price of $3.65.

Based in Petaluma, California, Cyan is a leading provider of metro packet and software defined networking solutions (SDN). It also offers multi-vendor network and service orchestration and next-generation network management software with advanced virtualization. Cyan has built a strong customer base that is complementary to Ciena which provides fiber optics networking. 

Gary Smith, CEO Ciena Corp., said in a statement that: “Ciena is transforming networks by applying web-scale technologies for delivering greater efficiency, network automation and agility while driving the industry toward an open ecosystem”, and also added that: “the addition of Cyan accelerates the availability of a complete solution for our customers to deliver virtualized networks and services on-demand.”

Mark Floyd, Cyan's Chairman and CEO, said in a statement that the two companies together “will provide our customers with the technologies they demand for a software-controlled operational model, orchestrating services on top of a scalable network, with the ability to rapidly create revenue streams in the new virtualized, on-demand world. The combination enables greater monetization for network operators through more efficient utilization of network assets and faster time-to-market with differentiated and profitable services.”

Headquartered in Hanover, Maryland, Ciena Corporation is a network specialist and a global supplier of telecommunication networking equipment, software and services, it products are used in telecommunications networks operated by telecom companies, cable companies and government agencies. The company was founded in 1992 by David Huber, Kevin Kimberlin, Lawrence Huang and Optelecom. In 2010, Ciena made a huge move when it bought from Nortel Networks its optical networking and carrier Ethernet business for $774 million. 

The deal which has been approved by the board of directors of both companies is expected to complete during Ciena's fiscal fourth quarter 2015. Morgan Stanley & Co LLC was Ciena's financial adviser, and Hogan Lovells acted as legal counsel. Jefferies LLC advised Cyan while Wilson Sonsini Goodrich & Rosati provided legal advice.

No comments:

Introducing A Great Place To Find A Job

The marketplace where tech companies compete to hire you. Meet 5 to 15 top companies in one week with salary info upfront. You’re in demand. Shouldn’t companies you love come to you with offers upfront? We think so. That’s why Hired is changing the way you find your next job with a faster, more transparent job search process built specifically for Python Programmers, RoR Developers, Java Programmers, Software Engineers, Big Data Scientists, Data Scientists, DevOps, UI/UX Designers, Product Managers, and Web Developers.

Hired is the first two-sided marketplace created specifically for Engineers, Data Scientists, Designers and Product Managers who are overwhelmed with job opportunities.

We believe recruiting should be transparent, unbiased, and that the talent should be in control. Our one week “auctions” provide upfront offers from vetted and funded companies, dedicated talent advocates, and a $2,000 signing bonus.

Our mission is to make hiring, or getting hired, less painful. Hired.com: A Whole New Recruiting Model.


THE PREMIER MARKETPLACE FOR TECH TALENT
BEGIN THE NEXT CHAPTER IN YOUR CAREER TODAY


Learn More: GET HIRED!

VMware: Virtualizing the Entire Data Center



Virtualizing the Entire Data Center by: VMware, The World's Leader in Virtualization and Cloud Infrastructure

VMware vSphere Essentials delivers the industry-leading virtualization platform for small businesses at an affordable price. Small businesses can virtualize their physical servers and centrally manage these servers, reducing hardware costs and increasing operating efficiency with a low upfront investment.
Provides cost-effective server consolidation and management for small offices

Learn more about the VMware vSphere Essentials