Ciena in Talks to Purchase Nortel Ethernet Division

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2:25 pm on October 5, 2009 | Category: Business, Corporate

Fiber-optic equipment maker, Ciena Corp., announced today that it is in “advanced discussions” to acquire Nortel’s carrier Ethernet business.

Nortel’s assets and technology would likely help to beef up Ciena’s product portfolio, providing new ways to transmit high-speed data and video traffic within cities. The acquisition would also be expensive, however, and any agreement between Ciena and Nortel will be subject to a competitive bidding process required under U.S. and Canadian bankruptcy laws.

Nortel’s Ethernet unit is its third largest business, generating $333 million in sales during the second quarter. Nortel’s other major businesses (wireless equipment and enterprise networking) have already been auctioned off as part of the company’s ongoing bankruptcy proceedings. Both sales are expected to close by the end of this year.