US optical networking systems and software firm Ciena has announced plans to acquire Nubis Communications, a New Jersey–based, privately held company that specializes in high-density optical and electrical interconnects.

The deal, which is expected to complete before the end of the year, is an all-cash transaction valued at US$270 million. The addition of Nubis will expand Ciena’s portfolio and highlight its growing focus on scaling up and scaling out connectivity inside the data center as artificial intelligence (AI) reshapes infrastructure demands.

Nubis was founded in 2020 by Peter Winzer, formerly of of Nokia Bell Labs, USA, and it counts the likes of Ericsson’s venture capital arm, TDK Ventures and Matrix Partners among its investors. The firm has developed technologies aimed at increasing bandwidth while cutting latency and power consumption at the same time.

The acquisition, which has been approved by the boards of directors of both firms, will strengthen Ciena’s expertise with more than 50 engineers who will join its R&D team and will enhance its portfolio with Nubis’s key technologies. These include the company’s flagship optical modules, which can deliver up to 6.4 Tb/s of full duplex capacity using light instead of traditional electrical signals. Nubis’s active copper cables support high-speed transmission, allowing data to travel up to 4 m at 200 Gb/s per lane.

The addition of Nubis will expand Ciena’s portfolio and highlight its growing focus on scaling up and scaling out connectivity inside the data center as artificial intelligence (AI) reshapes infrastructure demands.

For Ciena, best known for its metro and long-haul optical transport systems, the purchase “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 Chief Strategy Office David Rothenstein in a press release. “We are expanding our competitive advantage by advancing development of differentiated solutions, reducing development costs and driving long-term efficiency and profitability,” he added.

The acquisition will allow Ciena to expand its influence, positioning the company at the heart of the data-center ecosystem. The transaction is subject to regulatory approval and customary conditions.