Global networking systems, services, and software company Ciena has announced acquisitions in fiber broadband access to further address growing opportunity at the network edge. The company has acquired Tibit Communications and Benu Networks.
With the use of enhanced subscriber management and next-generation PON technologies, Tibit and Benu Networks intend to simplify broadband access networks. Tibit is a privately-held company headquartered in Petaluma, California, while Benu Networks is a privately-held company headquartered in Burlington, Massachusetts.
Tibit and Benu, both separately and collectively, would enhance Ciena’s current offering of solutions for broadband access use cases, such as residential broadband, enterprise business services, and fixed-wireless access, which would represent a sizeable addressable market for Ciena. The addition of a combined 60+ talented engineers with significant experience in access technologies would further strengthen Ciena’s knowledge in these fields.
“The acquisitions of Tibit Communications and Benu Networks will extend our ability to support customers’ next-generation metro and edge strategies as service providers globally accelerate investments to modernize their networks and improve connectivity at the network edge,” said Scott McFeely, Senior Vice President, Global Products and Services, Ciena. “Tibit’s high-speed PON technologies and Benu’s subscriber management products, combined with Ciena’s current access and edge portfolio, will enable us to offer broader, more complete, and fully integrated broadband access solutions that combine routing, subscriber management, and PON features and functionality.”
About Tibit Communications
In order to provide a compact pluggable transceiver that is simple to incorporate into a carrier-grade Ethernet switch, Tibit integrates PON-specific hardware and OS. Contrary to typical optical line terminal (OLT) providers’ closed and proprietary methods, Tibit’s open, microplug OLT technology enables quick PON implementation in any setting.
With more vertically integrated, next-generation PON solutions that support residential, business, and mobility use cases, including 10G XGS-PON with development paths to deliver 25G and higher PON in the future, Ciena would be able to build on its market traction and accelerate its time to market as a result of the acquisition.
“The global PON market is growing at a rapid pace and this acquisition will provide the opportunity to take Tibit’s differentiated products to market at scale through Ciena’s extensive service provider customer base,” said Edward Boyd, Vice President of Engineering and Chief Technology Officer of Tibit Communications. “And, as a combined team, we will continue to support and leverage Tibit’s existing network of relationships with system integrators and other equipment vendors.”
Tibit and Ciena were already collaborating. Ciena has also been an investor in Tibit since its initial funding round in 2016 and is currently Tibit’s largest shareholder. Ciena, who successfully utilizes Tibit’s products and technology in its line of broadband access solutions, is also the company’s biggest client.
According to the terms of this deal, Ciena will purchase all of the outstanding shares of Tibit Communications that it does not already hold in a debt-free, cashless transaction valued at roughly $210 million. In connection with the sale, Ciena will also enter into a number of staff retention agreements. Subject to customary closing conditions, the deal is anticipated to close during Ciena’ fiscal first quarter of 2023.
About Benu Networks
In addition to a virtual Broadband Network Gateway ((v)BNG), Benu Networks has created a portfolio of field-tested, cloud-native software solutions that would represent a great complement to Ciena’s current offering of broadband access solutions. By integrating routing, OLT, subscriber management, and network services into a single solution, Benu Networks would enable Ciena to lower both capital and operating costs while enhancing sustainability for their clients.
“Ciena and Benu have already successfully partnered in the market, including as part of an award-winning joint Proof of Concept (POC) with other residential broadband ecosystem vendors, as well as on active work on customer trials and POCs globally,” said Ajay Manuja, CEO at Benu Networks. “As part of Ciena, we will be in a stronger position to further extend the market reach and continued development of our software solutions.”
