Cyan's Stock Soars After Ciena's Buyout Bid

Shares of Cyan Inc. shot up 22% in premarket trade Monday, after networking company Ciena Corp. announced an agreement to buy the software company in a cash and stock deal valued at $400 million. Under terms of the agreement, the per-share bid of $4.75 for Cyan represents a 30% premium to Friday's closing price. The deal is expected to close in the fiscal fourth quarter, ending October. "Ciena is transforming networks by applying web-scale technologies for delivering greater efficiency, network automation and agility while driving the industry toward an open ecosystem," said Ciena Chief Executive Gary Smith. "The addition of Cyan accelerates the availability of a complete solution for our customers to deliver virtualized networks and services on-demand." Cyan's stock had run up 46% year to date through Friday, while the S&P 500 has gained 2.4%. Ciena's stock was still inactive ahead of Monday's open.