The network specialist Ciena Corp. outshined Nokia Siemens Networks to win the bidding for optical networking and carrier ethernet business of insolvent Nortel for $769 million.

Ciena corp. will pay $530 million in cash and $239 million in convertible notes to buy the Nortel’s concerned business.

Earlier in October, Ciena had offered $390 million in cash plus 10 million shares of common stock for the Nortel assets.

The final bid made by Nokia Siemens was very close to Ciena's offer.

When contacted, Nokia Siemens said, “Nokia Siemens Networks believes that its final offer represented fair value for the assets, and further bidding could not be financially justified.”

Ciena expects the acquisition to boost its revenues by more than double.

Shares in Ciena were down 2.6 per cent at 8.67 euros in the recent trading in Frankfurt.