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Article: Ciena Adds 2 Firms To Buying Spree; Telecom Purchases Extend Its Reach
- Article from:
- The Washington Post
- Article date:
- February 20, 2004
- Author:
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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Ciena Corp. agreed to pay $640 million of its stock for two
privately held telecommunications equipment makers, the latest step
in a strategy to buy its way through the telecommunications slump.
The Linthicum, Md.-based Ciena says the purchases will allow it to
take advantage of the expected explosion in residential migration to
high-speed Internet services such as DSL and cable modem.
Ciena plans to buy Catena Networks Inc. for $486.7 million, or
77.5 million shares, and Internet Photonics Inc. for about $153
million, or 24.4 million shares. The value of the deals is based on
the closing price Wednesday, the day before they were announced.
Ciena stock fell 11 cents a share yesterday, to ...