April 10, 2003
- Lithcum, MD
Ciena, a publicly traded optical networking systems and software provider, said it has reached a definitive agreement to acquire Acton, Mass.-based WaveSmith Networks, provider of multiservice switching, for $158 million in stock.
Under the terms of the agreement, all remaining outstanding shares of WaveSmith common and preferred stock will be exchanged for approximately 36 million shares of CIENA common stock, valued at $158 million. The deal is expected to close in the third quarter.
Ciena was an investor in WaveSmith's third round of financing and resells WaveSmith's equipment under a previously announced worldwide sales and reseller agreement. WaveSmith will be fully integrated into Ciena and will continue to operate out of its Acton headquarters.
Last month, WaveSmith announced a multi-year contract with SBC Services, in which its DN 7100 multiservice switch will be used for DSL aggregation across 200 nationwide sites.
WaveSmith's DN platform combines native ATM, frame relay, circuit emulation services, and multi-protocol label switching in a compact form with telephony-grade reliability. The DN 2100 and DN 4100 are optimized for remote edge and medium-density edge applications, while the DN 7100 is geared towards central office switching.
WaveSmith is backed by Atlas Venture, Argonaut Private Equity, Bessemer Venture Partners, Commonwealth Capital, and Fidelity Ventures.
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