Summary
Ciena Corporation (CIEN) announced on October 5, 2009, that it is actively engaged in negotiations to acquire a significant portion of Nortel's Metro Ethernet Networks (MEN) business. This potential acquisition involves substantially all of Nortel's optical networking and carrier Ethernet assets, indicating a strategic move by Ciena to bolster its position in key networking segments. Investors should note that this announcement is preliminary, as the terms are still under negotiation. The successful completion of this deal could significantly expand Ciena's market share and product portfolio in the optical and Ethernet networking space, particularly within the carrier market. Further details regarding the terms, valuation, and impact on Ciena's financials are expected as negotiations progress.
Key Highlights
- 1Ciena Corporation is in negotiations to acquire substantially all of Nortel's Metro Ethernet Networks (MEN) business assets.
- 2The potential acquisition includes optical networking and carrier Ethernet assets.
- 3The announcement was made via a press release on October 5, 2009.
- 4The filing is a Form 8-K, reporting under Regulation FD Disclosure.
- 5The information provided is part of ongoing negotiations and not a definitive agreement.
- 6The acquisition, if successful, could significantly impact Ciena's market presence in carrier networking.