Ciena to acquire Nubis Communications in $270m deal

Author: Joe Peck

Ciena, an American networking systems and software company, has announced an agreement to acquire Nubis Communications, a privately held company based in New Providence, New Jersey, USA, in an all-cash transaction valued at $270 million (£199 million).

Nubis specialises in high-performance, low-power optical and electrical interconnects designed to support artificial intelligence (AI) workloads. The acquisition is hoped to strengthen Ciena’s data centre strategy by adding new technologies and expanding its engineering expertise.

Expanding data centre interconnect capabilities

Nubis’ technology is focused on increasing scale and density inside the data centre to handle growing AI traffic. Its portfolio includes:

• Co-Packaged Optics (CPO) and Near Packaged Optics (NPO) — high-density optical modules capable of 6.4 Tb/s full-duplex bandwidth, optimised for low-latency, low-power operation. Combined with Ciena’s SerDes, these engines enable advanced interconnects for rack-to-rack and in-rack connectivity.

• Electrical Active Copper Cables (ACC) — analogue electronics that extend copper connectivity up to 4 metres at 200 Gb/s per lane, offering a low-power, low-latency alternative to traditional copper or DSP-based approaches.

In addition, more than 50 Nubis engineers will join Ciena’s research and development team, strengthening its technical capabilities inside the data centre.

David Rothenstein, Chief Strategy Officer at Ciena, says, “The acquisition of Nubis represents a significant step forward in Ciena’s strategy to address the rapidly growing demand for scalable, high-performance connectivity inside the data centre, driven by the explosive growth of AI-related traffic.

“With ownership of these key technologies for a wider range of use cases inside the data centre, we are expanding our competitive advantage by advancing development of differentiated solutions, reducing development costs, and driving long-term efficiency and profitability.”

Dan Harding, CEO of Nubis, adds, “The Nubis team is thrilled to join Ciena and enhance its portfolio with our interconnect technologies. Together, we will advance Ciena’s data centre strategy by delivering reliable and high-performance solutions to support the next generation of AI workloads.”

Transaction details

The acquisition has been approved by the boards of both companies and Nubis shareholders. It includes customary purchase price adjustments for cash, debt, and working capital, along with employee retention arrangements.

The deal is expected to close during Ciena’s fiscal fourth quarter of 2025, subject to standard closing conditions.