Hanover-based networking technology company Ciena Corp. plans to acquire software company Cyan Inc. in a $400 million cash and stock deal, the companies said Monday.
The acquisition would give Ciena the ability to sell customers software systems used to operate large data networks, along with its fiber-optic networking equipment.
Under the terms of the deal, Cyan stockholders would receive stock and cash equal to 0.224 Ciena shares for each Cyan share owned. The exchange values Petaluma, Calif.-based Cyan's stock at $4.75 per share, a 30 percent premium over its Friday closing price of $3.65.
Ciena shares gained 1.6 percent Monday, closing at $21.62 apiece. Cyan's share price rose more than 26 percent to close at $4.62.
The deal is expected to close in the fourth quarter of Ciena's fiscal year, which ends Oct. 31, pending approval by Cyan shareholders and U.S. regulatory agencies.