Summary
Ciena Corporation (CIEN) announced on November 22, 2022, two significant strategic moves aimed at bolstering its broadband access network solutions. The company has entered into a definitive agreement to acquire Tibit Communications, Inc. for approximately $210 million in cash. Tibit specializes in passive optical network (PON) solutions, notably its open, micro pluggable OLT technology, which Ciena has been investing in and utilizing since 2016. This acquisition is expected to close in Ciena's fiscal first quarter of 2023. In addition to the Tibit acquisition, Ciena has successfully completed its acquisition of Benu Networks, Inc., a provider of broadband network gateway software. Benu's cloud-native software solutions, including its virtual Broadband Network Gateway (vBNG), are designed to complement Ciena's existing offerings. These combined acquisitions are intended to enhance Ciena's portfolio for residential broadband, enterprise business services, and fixed-wireless access markets by simplifying broadband access networks.
Key Highlights
- 1Ciena to acquire Tibit Communications for approximately $210 million in a cash-free, debt-free transaction.
- 2Acquisition of Tibit is expected to close in Ciena's fiscal Q1 2023, subject to customary conditions.
- 3Ciena has completed the acquisition of Benu Networks, Inc.
- 4Tibit provides passive optical network (PON) solutions with open, micro pluggable OLT technology.
- 5Benu Networks offers cloud-native broadband network gateway software solutions.
- 6Both acquisitions are aimed at strengthening Ciena's broadband access network portfolio.
- 7Ciena was already a significant investor and the largest customer of Tibit prior to the acquisition agreement.