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CIENA CORP 8-K Report, Acquisition Completed (Mar 5, 2008)

Reports
Acquisitions & Dispositions·Exhibits & Filings
Filing Date
Filed March 5, 2008
Period End
March 3, 2008
Security
CIEN
In the record · 2016–202610-K1010-Q338-K105

CIEN filed 10 annual reports (10-K), 33 quarterly reports (10-Q) and 105 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Apr ’16Apr ’16
  2. FY2018 annual report10-K · Dec ’18Dec ’18
  3. Leadership change8-K · Apr ’21Apr ’21
  4. Leadership change8-K · Jun ’25Jun ’25

01—Abstract

Summary

Summary of the 8-K filed March 5, 2008. Cited figures are marked; the original filing is the authoritative source.

CIENA CORP (CIEN) announced the completion of its acquisition of World Wide Packets, Inc. on March 3, 2008.

This strategic move integrates World Wide Packets, a provider of Carrier Ethernet network equipment, into Ciena's operations. The acquisition was executed through a merger where World Wide Packets now operates as a wholly owned subsidiary of Ciena. For its shareholders, World Wide Packets received approximately 2.5 million shares of Ciena common stock and $196.7 milliona in cash.

A portion of this consideration, including $20.0 millionb in cash and 340,000 shares, has been placed in escrow for a year to cover potential indemnification obligations. Ciena also assumed World Wide Packets' outstanding options and $11.3 million in debt, in addition to covering transaction costs of $10.3 million. This acquisition is expected to enhance Ciena's product portfolio in carrier Ethernet services.

02—Key points

Key Highlights

  1. Ciena Corporation has successfully acquired World Wide Packets, Inc. as of March 3, 2008.
  2. The acquisition was structured as a merger, with World Wide Packets becoming a wholly owned subsidiary of Ciena.
  3. Consideration paid to World Wide Packets' stockholders includes approximately 2.5 million shares of Ciena common stock and $196.7 million in cash.
  4. $20.0 million in cash and 340,000 Ciena shares are held in escrow for one year as security for indemnification.
  5. Ciena assumed outstanding World Wide Packets stock options and $11.3 million in debt.
  6. World Wide Packets specializes in Carrier Ethernet-based services and network equipment.
  7. Financial statements related to the acquisition will be filed within 71 days.

03—Questions

Frequently Asked Questions

  1. What was acquired by Ciena and what does it do?

    Ciena acquired World Wide Packets, Inc., a privately held company that supplies communications network equipment enabling Carrier Ethernet-based services.

  2. How much did Ciena pay for World Wide Packets?

    The total consideration included approximately 2.5 million shares of Ciena common stock and approximately $196.7 million in cash. Ciena also assumed $11.3 million in debt and paid approximately $10.3 million in transaction costs.

  3. What is the purpose of the escrow account?

    The escrow account, holding $20.0 million in cash and 340,000 Ciena shares, is to secure the indemnification obligations of World Wide Packets' stockholders for a period of one year.

  4. When will Ciena provide detailed financial information about the acquisition?

    Ciena stated that the required financial statements will be filed within seventy-one calendar days after the filing of this Current Report on Form 8-K, which was March 5, 2008.

04—Continue

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