NEW YORK (TheStreet) -- Ciena (CIEN) shares are up 0.61% to $21.40 in trading on Monday after the company made a successful bid to acquire network solutions provider Cyan (CYNI) for approximately $400 million.
The per share value of the deal is $4.75, a 30% premium over Cyan's closing price on Friday. The deal is expected to close by the fourth quarter of 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."
Cyan shares are spiking, up 27.95% to $4.67 per share in trading today.
TheStreet Ratings team rates CIENA CORP as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate CIENA CORP (CIEN) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive."