Ciena Expands Data Center Strategy with Acquisition of Nubis Communications
Ciena (NYSE: CIEN), a global leader in high-speed connectivity, has announced a definitive agreement to acquire Nubis Communications, a privately-held company based in New Providence, New Jersey. This strategic move underscores Ciena’s commitment to addressing the growing demand for scalable, high-performance connectivity inside data centers, driven by the rapid expansion of AI-related workloads. With its expertise in cutting-edge optical and electrical interconnect technologies, Nubis will enhance Ciena’s portfolio and strengthen its ability to deliver innovative solutions tailored to the evolving needs of modern data centers.
Nubis’ Breakthrough Technologies
Nubis specializes in high-performance, ultra-compact, low-power optical and electrical interconnects designed to support the increasing demands of AI workloads. The company’s portfolio includes two key technologies that complement Ciena’s existing high-speed interconnect offerings:
1. Co-Packaged Optics (CPO) / Near Packaged Optics (NPO):
Nubis’ compact, high-density optical modules leverage light instead of traditional electrical signals to enable ultra-fast data transfer. These modules support up to 6.4 Tb/s full-duplex bandwidth and are optimized for low-latency, low-power operation, making them ideal for scaling AI systems. When combined with Ciena’s high-speed SerDes technology, Nubis’ optical engines will enable differentiated CPO solutions to address high-performance connectivity needs both inside and between racks.
2. Electrical Active Copper Cables (ACC):
Nubis’ advanced analog electronics power Active Copper Cables (ACC), which facilitate high-speed data transmission at speeds of 200 Gb/s per lane over distances of up to 4 meters. This low-power, low-latency solution allows customers to connect more AI accelerators across racks without the limitations of traditional copper or DSP-based alternatives.
By integrating these technologies into its portfolio, Ciena will significantly increase scale-up and scale-out capacity and density inside the data center. This capability is critical for supporting the exponential growth of AI workloads, which require faster, more efficient, and highly reliable interconnect solutions.
Strengthening Expertise and Talent
In addition to expanding its technological capabilities, Ciena will gain access to Nubis’ team of over 50 highly skilled engineers. These professionals bring deep technical expertise in optical and electrical interconnects, aligning seamlessly with Ciena’s R&D culture. Their contributions will further accelerate the development of differentiated solutions while reducing costs and driving long-term efficiency and profitability.
“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,” said David Rothenstein, Chief Strategy Officer at Ciena. “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.”
Dan Harding, CEO of Nubis, expressed enthusiasm about joining forces with Ciena. “The Nubis team is thrilled to join Ciena and enhance its industry-leading portfolio with our breakthrough interconnect technologies,” said Harding. “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.”
Strategic Financial Details
Under the terms of the agreement, Ciena will acquire Nubis in an all-cash transaction valued at $270 million. The deal includes customary purchase price adjustments for cash, debt, and net working capital at closing. Additionally, Ciena will implement employee retention arrangements to ensure continuity and alignment with its strategic goals.
The acquisition has received unanimous approval from the boards of directors of both companies, as well as Nubis’ shareholders. The transaction is expected to close during Ciena’s fiscal fourth quarter of 2025, subject to customary closing conditions.
Addressing the Growing Demand for AI Workloads
The acquisition of Nubis comes at a pivotal time as organizations worldwide grapple with the challenges of managing and scaling AI workloads. The explosive growth of AI applications has placed unprecedented demands on data centers, requiring solutions that can deliver higher performance, greater efficiency, and lower latency. By incorporating Nubis’ technologies into its portfolio, Ciena is well-positioned to meet these demands and solidify its leadership in the high-speed connectivity market.
Nubis’ Co-Packaged Optics (CPO) and Near Packaged Optics (NPO) technologies, along with its Electrical ACC solutions, provide a powerful combination of speed, density, and energy efficiency. These innovations will enable Ciena to offer differentiated solutions that address the unique requirements of AI-driven environments, from hyperscale data centers to enterprise deployments.
A Vision for the Future
As AI continues to transform industries, the need for advanced connectivity solutions inside data centers will only intensify. Ciena’s acquisition of Nubis demonstrates its proactive approach to staying ahead of this trend. By combining Nubis’ groundbreaking technologies with its own expertise, Ciena is poised to deliver the next generation of high-performance interconnect solutions that will power the future of AI.
This acquisition not only expands Ciena’s capabilities but also reinforces its commitment to innovation and customer success. With the integration of Nubis’ talent and technologies, Ciena is better equipped than ever to address the complex challenges of modern data centers and drive long-term value for its stakeholders.
About Ciena
Ciena is the global leader in high-speed connectivity.We build the world’s most adaptive networks to support exponential growth in bandwidth demand. By harnessing the power of our networking systems, components, automation software, and services, Ciena revolutionizes data transmission and network management. With unparalleled expertise and innovation, we empower our customers, partners, and communities to thrive in the AI era. For updates on Ciena, follow us on LinkedIn and X, or visit the Ciena Insights webpage and Ciena website.
