Ciena Corporation, a networking systems, services and software company, has announced that it has signed a binding agreement to acquire privately held companies Tibit Communications and Benu Networks in order to complement Ciena’s existing portfolio of solutions for broadband access use cases.
Improved subscriber management and next-generation PON technologies will be used by Tibit and Benu to complement Ciena’s current portfolio of solutions for broadband access use cases, such as residential broadband, enterprise business services, and fixed-wireless access, which represent a sizeable addressable market for Ciena.
Additionally, the inclusion of a combined 60+ brilliant engineers with considerable experience in access technologies would increase Ciena’s expertise in these fields as a result of the acquisitions.
Tibit Communications
Tibit creates micro pluggable transceivers that can be readily integrated into carrier-grade Ethernet switches by fusing PON-specific hardware and OS. With its open, microplug OLT technology, Tibit is able to deploy PON quickly in any setting, in contrast to typical optical line terminal (OLT) providers closed and proprietary approaches.
With more vertically integrated, next-generation PON solutions that support residential, enterprise, and mobility use cases, including 10G XGS-PON with development paths to deliver 25G and higher PON in the future, Ciena will be able to build on its market traction and accelerate its time to market as a result of the acquisition.
According to Edward Boyd, Vice President of Engineering and Chief Technology Officer of Tibit Communications, with Ciena’s large client base of service providers and the rapidly expanding worldwide PON industry, this acquisition will give Tibit the chance to commercialize its unique technology on a large scale. In addition, working together, they will maintain and strengthen Tibit’s network of connections with system integrators and other equipment providers.
Tibit and Ciena already have a good rapport. Since Tibit’s original investment round in 2016, Ciena has invested in the company and is currently its largest shareholder. Ciena, who effectively uses Tibit’s products and technology in its line of broadband access solutions, is also the company’s biggest client.
As per the terms of the agreement, Ciena will purchase all outstanding shares of Tibit that it does not already hold in a debt-free, cash-free transaction valued at roughly $210 million, with cash to be used for the merger consideration.
In connection with the sale, Ciena will also enter into a number of employee retention agreements. Both the boards of directors of the two firms as well as the shareholders of Tibit have given their approval to the Tibit transaction. Subject to customary closing conditions, the deal is anticipated to occur during Ciena’s fiscal first quarter of 2023.
Benu Networks
Ciena’s current range of broadband access solutions is greatly complemented by the cloud-native, field-proven software solutions that Benu has created, including a virtual Broadband Network Gateway ((v)BNG). Benu will enable Ciena to offer a solitary solution that combines routing, OLT, subscriber management, and network services, lowering capital and operational costs and enhancing sustainability for their clients.
For Ajay Manuja, CEO of Benu Networks, Ciena and Benu have already collaborated effectively in the market, working together on customer trials and POCs around the world as well as an award-winning collaborative Proof of Concept (POC) with other vendors in the home broadband ecosystem. They will be in a better position to broaden the market and continue the development of their software solutions once they are a part of Ciena.
According to Scott McFeely, Senior Vice President, Global Products and Services, Ciena, as service providers around the world speed investments to update their networks and boost connectivity at the network edge, the acquisitions of Tibit Communications and Benu Networks will increase their capacity to support clients’ next-generation metro and edge initiatives.
By combining Ciena’s existing access and edge portfolio with Tibit’s high-speed PON technologies and Benu’s subscriber management products, they will be able to offer a wider range of comprehensive, fully integrated broadband access solutions that combine routing, subscriber management, and PON features and functionality.
