Ciena to Buy Internet Photonics2/19/2004 3:06 AM Eastern
Fiber-optic-networking provider Ciena Corp. announced plans to buy Internet Photonics Inc. in a stock swap valued at $150 million.
IP supplies gigabit-Ethernet gear to six of the top 10 cable MSOs, primarily for video-on-demand and HDTV deployments.
Ciena edged its way into the networking-vendor space during the late 1990s with the telecommunications boom and managed to survive through the meltdown of the dot-com era.
Ciena president and CEO Gary Smith said the deal will expand Ciena's product line. "In the cable market, optical Ethernet is the underlying infrastructure for the new 'triple-play' of bundled services, as well as VOD, VoIP [voice over Internet protocol] and HDTV," he said in a prepared statement.
IP welcomed the news. "When combined with Ciena's global reach, financial strength and current solution set, Internet Photonics' leading broadband solutions become even more compelling and comprehensive," president and CEO Gregory Koss said.
The deal calls for IP's stock to be exchanged for Ciena common stock, with Ciena issuing 24.4 million shares, which places the value of the deal at $150 million, Ciena said.