Network solutions provider Ciena said it has agreed to acquire privately-held Packet Design, to help enhance the company’s network software strategy.
Packet Design provides network performance management software focused on Layer 3 network optimization, topology and route analytics.
The deal is expected to close during the third quarter of 2018. Financial terms were not disclosed.
Ciena said the deal will expand its Blue Plant automation capabilities beyond network Layers 0-2 and into IP. The company plans to combine its Blue Planet software platform with Packet Design’s performance analytics and service path computation capacities to create a micro-services-based platform. The platform will provide real-time analytics, optimization and orchestration capabilities to support closed-loop automation use cases across multi-layer, multi-vendor networks, according to Ciena.
“The addition of Packet Design will enhance our position by enabling customers to realize networks that are more adaptive – capable of self-optimizing and self-healing for faster time-to-market for new services, more efficient and lower cost network operations, and the ability to deliver an overall better customer experience,” said Rick Hamilton, SVP of global software and services at Ciena, in a statement.
Ciena also released its second quarter financial results on Thursday, reporting $730 million in revenues, up 3.3 percent year over year. Adjusted net income was $33.8 million, compared to $48.2 million in the year ago period.
“We delivered strong revenue and record order flow in the second quarter as we continue to broaden our leadership and capture market share,” Ciena President and CEO Gary B. Smith said in a statement. “Gross margin was impacted by several new, international service provider deployments in their early stages; however, we are confident in our ability to return to our normalized gross margin levels. We anticipate strong revenue growth in the second half of fiscal 2018 and we remain confident in our three-year financial targets.”