Ciena Acquires Nubis Communications for $270 Million

By Greg Peters • Monday, September 22 10:18 • Permanent Link

Ciena (NYSE: CIEN) has just announced its acquisition of Nubis Communications for $270 million in an all-cash transaction. The acquisition is expected to strengthen Ciena's position in the data center market, particularly in addressing the increasing demand for scalable, high-performance connectivity driven by the growth of AI-related traffic.

Nubis Communications, based in New Providence, New Jersey, specializes in high-performance, ultra-compact, low-power optical and electrical interconnects tailored to support AI workloads. Their solutions include co-packaged optics (CPO)/near packaged optics (NPO) and electrical ACC, which deliver ultra-fast data transfer using light instead of traditional electrical signals. These technologies support up to 6.4 TB/s full-duplex bandwidth and enable data to travel up to 4 meters at speeds of 200 GB/s per lane.

This acquisition will not only expand Ciena's portfolio but also add critical talent to address a wider range of opportunities inside the data center. It will bring in more than 50 talented engineers with deep technical expertise and strong cultural alignment with Ciena’s R&D team.

David Rothenstein, Chief Strategy Officer at Ciena, stated that the acquisition of Nubis represents a significant step forward in Ciena’s strategy to address the rapidly growing demand for scalable, high-performance connectivity inside the data center, driven by the explosive growth of AI-related traffic. He emphasized that by owning these key technologies for a wider range of use cases inside the data center, Ciena is expanding its competitive advantage and advancing the development of differentiated solutions.

The transaction has been approved by the boards of directors of both companies as well as Nubis' shareholders and is expected to close during Ciena’s fiscal fourth quarter 2025, subject to customary closing conditions.

In light of this acquisition, investors and industry watchers will be keen to see how Ciena's financial metrics and strategic positioning change in the coming quarters. Today the company's shares have moved 0.24% to a price of $138.37. Check out the company's full 8-K submission here.

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