Ciena completes Nortel MEN buyout
Ciena finalizes cash buy of Nortel's optical and carrier Ethernet business assets
Ciena has completed its acquisition of Nortel's optical and carrier Ethernet assets, the network specialist has announced.
The company has paid $773.8 million in cash for the assets from Nortel's Metro Ethernet Networks (MEN) group, although the final figure will reflect a downward adjustment to the aggregate purchase price of approximately $62 million.
The deal will allow Ciena to continue to develop next-generation networks based on converged optical Ethernet, according to Gary Smith, president and CEO of the company: "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. With broader geographic reach, deeper customer relationships and a stronger portfolio of solutions, we're confident that this acquisition positions Ciena for faster growth." he said
"As we unite these two organizations, we are emphasizing performance in every aspect of the business and are organizing the newly-transformed Ciena to ensure we remain operationally efficient and financially strong. 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," Smith added.
Ciena reports that it has already put senior management and leadership teams in place for the new converged business, including the appointment of Philippe Morin, previously president of Nortel MEN, as senior vice president for Ciena's Global Products Group.