Ciena Closes World Wide Packets Deal

Ciena Corp. said it has completed its acquisition of World Wide Packets Inc. The deal was announced Jan. 22.

“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.

Ciena acquired all 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 outstanding of World Wide Packets stock options and substituted them for the right to acquire approximately 900,000 shares of Ciena common stock. The company also assumed $11.3 million in outstanding World Wide Packets debt. Based on the closing price of Ciena’s common stock on Feb. 29, the value of the shares issued by Ciena (including option assumptions) is approximately $87.8 million, the company said.

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.

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