NEW YORK (TheStreet) -- Cyan (CYNI) shares are jumping 28.22% to $4.68 in trading on Monday after the networking solutions provider agreed to be acquired by Ciena (CIEN) in a deal valued at approximately $400 million.
The per share value of the deal is $4.75, a 30% premium over the stock's closing price on Friday. The deal is expected to close by the fourth quarter this year.
"Ciena is transforming networks by applying web-scale technologies for delivering greater efficiency, network automation and agility while driving the industry toward an open ecosystem," said Ciena CEO Gary Smith. "The addition of Cyan accelerates the availability of a complete solution for our customers to deliver virtualized networks and services on-demand."
Separately, Cyan reported its first quarter earnings results before the opening bell today, reporting 89% year over year growth in revenue to $36 million for a net loss of 14 cents per share. Analysts were expecting the company to report revenue of $33.3 million with a net loss of 15 cents per share.
Ciena shares are up 0.66% to $21.43 in trading today.
TheStreet Ratings team rates CYAN INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CYAN INC (CYNI) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: CYNI Ratings Report