Ciena To Buy Cyan For $400 Million

CHELSEY DULANEY

May 4, 2015 7:44 a.m. ET

Telecom-equipment maker Ciena Corp. said Monday that it has agreed to buy Cyan Inc.in a cash-and-stock deal valued at about $400 million.

Cyan provides software and platforms for network operators, while Ciena makes fiber-optic networking equipment.

Under the terms of the deal, Cyan shareholders will receive a consideration equal to 0.224 shares of Ciena stock, 89% of which will be delivered in Ciena shares and 11% in cash.

Based on Ciena’s closing price Friday, the offer is valued at $4.77 per Cyan share, a 31% premium to Cyan’s last closing price.

Net of cash being acquired, the deal is valued at $335 million.

Meanwhile, Cyan reported that its revenue surged 89% in the first quarter of the year to $36 million.

Cyan posted a net loss of $52.9 million, or $1.11 a share, compared to a loss of $17.8 million, or 38 cents a share, a year ago. Excluding certain items, Cyan’s per-share net loss fell to 14 cents from net loss of 33 cents a share a year ago.

In March, Ciena posted a wider loss and disappointing revenue for its latest quarter, weighed by foreign exchange and the timing of orders.

Higher demand in the optical-gear market has helped the company improve its revenue in recent periods. Ciena has also upgraded and diversified its offerings while broadening its base of customers.

Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com