Ciena Wins Bidding for Nortel Assets

Updated from 1:50 a.m. EST

LINTHICUM, Md. (TheStreet) -- Ciena(CIEN Quote) confirmed Monday it has won the bidding for the optical networking and carrier ethernet assets of Nortel.

Ciena said Monday it has agreed to pay $530 million in cash and issue $239 million in senior convertible notes.

Ciena said the transaction is expected to close in the first calendar quarter of 2010.

"These optical and carrier Ethernet assets bring exceptional technologies, talent and scale that will accelerate Ciena's current strategy to deliver innovative network solutions to customers worldwide," said Gary Smith, Ciena's CEO and president, in a statement.

Earlier Monday, Nokia Siemens Networks said Monday that it didn't submit the highest bid for the Nortel assets.

Nokia Siemens, a joint venture of Finland's Nokia(NOK Quote) and Germany's Siemens(SI Quote), said it "believes that its final offer represented fair value for the assets, and further bidding could not be financially justified."

Nokia Siemens submitted its bid along with private equity firm One Equity Partners.

-- Reported by Joseph Woelfel in New York .

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