The US$773.8 million aggregate purchase price for the acquisition consists entirely of cash is subject to adjustment based upon the level of net working capital transferred to Ciena at closing, which is currently estimated to result in a downward adjustment to the aggregate purchase price of approximately $62 million.
In accordance with the asset sale agreement, prior to the closing Ciena elected to replace the $239 million in convertible notes that were to be issued as part of the aggregate purchase price with cash equivalent to 102% of the face amount of the notes replaced, or $243.8 million (USD).
“The acquisition of these assets accelerates Ciena’s overall strategy and gives us stronger operating leverage to continue investing in innovation that will allow us to deliver on our vision for next-generation networks,” said Gary Smith, Ciena’s president and CEO. “With broader geographic reach, deeper customer relationships and a stronger portfolio of solutions, we’re confident that this acquisition positions Ciena for faster growth.”
Ciena already has completed several important milestones in its comprehensive integration plan, and remains focused on ensuring a smooth transition for the benefit of both customers and employees. Specifically:
Ciena has selected its senior management and extended leadership teams and defined their areas of responsibility and accountability, and identified and confirmed substantially all of the organisational structure to the extent permitted by applicable law.
Nearly 100% of the employment offers Ciena has extended to Nortel MEN employees have been accepted, including a significant number in management positions.
Ciena Corporation, a network specialist vendor has successfully completed the acquisition of the optical networking and Carrier Ethernet assets of Nortel?s Metro Ethernet Networks (MEN) business.
