Optical network equipment vendor Ciena Corp announced the acquisition of Ethernet technology firm World Wide Packets for about $290 million in cash and stock. The deal continues Ciena's impressive move into the converged Ethernet sector, and comes with WWP's recently-announced deal to supply AT&T with Ethernet gear.
Some analysts criticized Ciena for possibly paying too much --the purchase price increases to $305 million when you add WWP's debt-- and the vendor has revenue of only about $30 million. But, at a time when carriers like AT&T and BT are moving to bring Ethernet into their networks, owning your own products and experienced Ethernet sales team certainly provides an edge against traditional transport gear competitors.
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- Ciena recently landed an Ethernet deal with BT