NEW DELHI: US-based telecom gear maker Ciena said it has entered into a definitive agreement to acquire privately-held Tibit Communications in a bid to accelerate the time-to-market for PON solutions for enterprise, residential and mobility use cases.
A joint statement said that Ciena will acquire the remaining shares of Petaluma, California-headquartered Tibit that it does not already own in a cash-free, debt-free transaction currently valued at approximately $210 million under the terms of the agreement.
Ciena will also enter into certain employee retention arrangements in relation to this transaction. The deal is expected to be closed during the first quarter of fiscal 2023. It has already received approvals from the boards of directors of both companies.
“The global PON market is growing at a rapid pace and this acquisition will provide the opportunity to take Tibit’s differentiated products to market at scale through Ciena’s extensive service provider customer base,” said Edward Boyd, Vice President of Engineering and Chief Technology Officer of Tibit Communications.
Ciena said this acquisition will enable it to accelerate its time to market with next-generation PON solutions including 10G XGS-PON, with a roadmap to deliver 25G and higher PON in the future.
Ciena, as per the statement, has been an investor in Tibit since its initial funding round in 2016, and is also currently Tibit’s largest shareholder.
Alongside, Ciena has acquired software and solutions provider Benu Networks, headquartered in Burlington, Massachusetts.
“Tibit and Benu are focused on simplifying broadband access networks through next-generation PON technologies and advanced subscriber management, respectively,” Ciena said.
Ciena said Tibit and Benu will complement its existing portfolio of solutions for broadband access use cases for residential broadband, enterprise business services, and fixed-wireless access, which represent a significant addressable market.
Ciena said it will also gain from the expertise of over 60 engineers with significant experience in access technologies.
“The acquisitions of Tibit Communications and Benu Networks will extend our ability to support customers’ next-generation metro and edge strategies as service providers globally accelerate investments to modernize their networks and improve connectivity at the network edge,” said Scott McFeely, Senior Vice President, Global Products and Services, Ciena.
Tibit’s and Benu’s products combined with Ciena’s current access and edge portfolio will enable the company to offer complete and integrated broadband access solutions that combine routing, subscriber management, and PON features and functionality, McFeely added.