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Ciena Buying World Wide Packets

Ciena Corp. (Nasdaq: CIEN) has agreed to acquire World Wide Packets, a Spokane Valley, Wash.-based maker of Ethernet access products. The deal is valued at approximately $290 million, including $200 million in cash and 3.4 million shares of Ciena common stock. Goldman Sachs advised World Wide Packets on the deal, while Ciena was advised by Morgan Stanley. World Wide Packets has raised around $130 million in total VC funding since 2001, from firms like Azure Capital Partners, Northwest Venture Associates, Madrona Venture Group, Telesystem-Argo Global Capital and Entrepia Ventures. Get more info,

 

PRESS RELEASE
Under the terms of the acquisition agreement, World Wide Packets will merge with a wholly-owned subsidiary of Ciena, and all outstanding shares of World Wide Packets common and preferred stock, including employee stock options and warrants (which will be assumed by Ciena), will be exchanged for approximately $200 million in cash and 3.4 million shares of Ciena common stock. In addition, Ciena will assume up to $15 million in outstanding World Wide Packets debt. Based on the closing price of Ciena's stock on Friday January 18, 2008, of $26.52, the aggregate value of the shares to be issued by Ciena is approximately $90 million.

 

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