Ciena, a leader in high-speed connectivity solutions, has officially announced its definitive agreement to acquire Nubis Communications. Nubis is a privately-held company based in New Providence, New Jersey, and its acquisition is set to significantly enhance Ciena’s capabilities within the rapidly expanding data center market. The primary focus of Nubis is on developing high-performance, compact, and energy-efficient optical and electrical interconnects, specifically designed to support the demanding requirements of AI workloads. This strategic acquisition will not only broaden Ciena’s existing portfolio but also bring in valuable talent, allowing the company to address an even wider array of opportunities within data center environments.
The solutions offered by Nubis perfectly complement Ciena’s current portfolio of high-speed interconnects. This synergy is expected to unlock new capabilities crucial for supporting the escalating demands of AI workloads. By integrating Nubis’ technology, Ciena will be able to dramatically increase the scale-up and scale-out capacity and density within data centers. The Nubis portfolio is built around two pivotal technologies.
The first involves their innovative Co-Packaged Optics (CPO) and Near Packaged Optics (NPO). These compact, high-density optical modules are engineered to facilitate ultra-fast data transfer by utilizing light rather than conventional electrical signals. These modules can support an impressive 6.4 terabits per second of full-duplex bandwidth and are meticulously optimized for low-latency and low-power operations, making them exceptionally well-suited for scaling complex AI systems.
When combined with Ciena’s advanced high-speed SerDes technology, Nubis’ optical engines will enable highly differentiated CPO solutions, effectively addressing the critical high-performance connectivity needs both within and between server racks.
The second key technology from Nubis is its Electrical Active Copper Cables (ACC). These advanced analog electronics allow Active Copper Cables to support high-speed data transmission, enabling data to travel up to four meters at remarkable speeds of 200 gigabits per second per lane. This low-power, low-latency solution offers a significant advantage for customers seeking to connect multiple AI accelerators across racks, thereby overcoming the inherent limitations often found in traditional copper or digital signal processor (DSP)-based solutions.
Beyond the technological advancements, this acquisition will also substantially strengthen Ciena’s internal expertise within the data center sector. The integration will bring over 50 highly talented engineers onto Ciena’s team. These individuals possess deep technical knowledge and exhibit a strong cultural alignment with Ciena’s existing research and development team, promising a smooth transition and accelerated innovation.
Regarding the financial aspects of the agreement, Ciena will acquire Nubis in an all-cash transaction valued at $270 million. This amount is subject to a customary purchase price adjustment mechanism that will account for the amount of cash, debt, and net working capital of Nubis at the time of closing, among other considerations.
And Ciena has committed to entering into specific employee retention arrangements as part of this transaction. The acquisition has received unanimous approval from the boards of directors of both companies, as well as from Nubis’ shareholders. The deal is anticipated to be finalized during Ciena’s fiscal fourth quarter of 2025, contingent upon the satisfaction of customary closing conditions.
KEY QUOTES:
“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 center, 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 center, we are expanding our competitive advantage by advancing development of differentiated solutions, reducing development costs, and driving long-term efficiency and profitability.”
David Rothenstein, Chief Strategy Officer at Ciena
“The Nubis team is thrilled to join Ciena and enhance its industry-leading portfolio with our breakthrough interconnect technologies. Together, we will advance Ciena’s data center strategy by delivering reliable, high-quality, and high-performance interconnect solutions to support the next generation of AI workloads.”
Dan Harding, CEO of Nubis
