ONI Systems and Progress Telecom ink optical networking deal

ONI Systems (Nasdaq: ONIS) and Progress Telecom said Wednesday they have reached an optical networking deal, worth at least $15 million.

ONI Systems, an optical network equipment maker, was off 0.19 to 50.81. Shares of the Florida Progress Corp. (NYSE: FPC), the parent of Progress Telecom, moved up 0.13 to 55. Yesterday, the Securities and Exchange Commission gave final approval to a $5.3 billion takeover of the Progress Telecom's parent company by CP& L, Inc. (NYSE: CPL).

According to the deal, ONI Systems will become a major supplier for Progress Telecom's optical metro networks, worth at least $15 million in equipment and services. ONI Systems will provide its platform and services for Progress' metro networks, adding to deals across Progress Telecom's Miami and Tampa rings. The carrier also has the option to deploy its systems in Atlanta, Charlotte, Jacksonville, Raleigh and Washington, D.C.

ONI Systems shares have slumped recently, despite topping analyst estimates for the third quarter.