Ciena® Corporation (NASDAQ: CIEN), the network specialist, today announced the completion of its acquisition of World Wide Packets, Inc. pursuant to the terms of the acquisition agreement announced on January 22, 2008.
“This acquisition enables us to capitalize on our early leadership in converged Ethernet solutions by accelerating the implementation and time-to-market of our Carrier Ethernet portfolio, drawing in new customers and strengthening our position in existing accounts,” said Gary Smith, Ciena president and CEO. “In addition, World Wide Packets brings strong engineering expertise and business acumen in this technology arena, deepening Ciena’s command of this nascent market and furthering our credibility in the space.”
Under the terms of the agreement, Ciena acquired all of the outstanding shares of World Wide Packets common and preferred stock in exchange for $196.7 million in cash and approximately 2.5 million shares of Ciena common stock. Ciena assumed all then-outstanding World Wide Packets stock options and substituted them for the right to acquire approximately 0.9 million shares of Ciena common stock. In addition, Ciena assumed $11.3 million in outstanding World Wide Packets debt. Based on the closing price of Ciena’s common stock on February 29, 2008, the aggregate value of the shares issued by Ciena (including option assumptions) is approximately $87.8 million. The Ciena shares issued in the transaction are not subject to lock-up provisions and therefore are freely tradable effective with the close.
World Wide Packets will add approximately 180 employees to Ciena, and will continue to operate from its Spokane Valley, Wash. and San Jose, Calif. locations.
About Ciena
Ciena specializes in network transition. We provide the flexible platforms, intelligent software and professional services to build converged networks for enhanced services and applications. With a growing global presence, Ciena leverages its heritage of practical innovation to deliver maximum performance and economic value in communications networks worldwide. For more information, visit www.ciena.com.
About World Wide Packets
World Wide Packets is a leading provider of Carrier Ethernet solutions that allow broadband service providers and telecommunications service providers to realize a new level of speed and agility in the deployment of revenue generating Ethernet services. With World Wide Packets' LightningEdge product family, providers can address the demand with their growing customer base by fully leveraging the power, flexibility and economies of Ethernet technology, while dramatically reducing the CapEx and OpEx of existing legacy networks. Only World Wide Packets offers the QoS, scalability, reliability and manageability necessary to making True Carrier Ethernet services such as IPTV, VoIP, mission critical data and wireless transport a reality. For more information on World Wide Packets, please visit www.wwp.com.
Note to Ciena Investors
This press release contains certain forward-looking statements based on current expectations, forecasts and assumptions that involve risks and uncertainties. These statements are based on information available to the Company as of the date hereof; and Ciena's actual results could differ materially from those stated or implied, due to risks and uncertainties associated with its business, which include the risk factors disclosed in its Report on Form 10-K, which Ciena filed with the Securities and Exchange Commission on December 27, 2007. Forward-looking statements include statements regarding Ciena's expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. Ciena assumes no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise.
Contacts:
Ciena Corporation
Nicole Anderson
(410)
694–5786
pr@ciena.com
or
Investor
Contact:
Ciena Corporation
Suzanne DuLong
(888)
243-6223
ir@ciena.com
