Cisco to buy Acacia Communications to expand optical systems portfolio
Category: #technology  By Saipriya Iyer  Date: 2019-07-10
  • share
  • Twitter
  • Facebook
  • LinkedIn
Cisco to buy Acacia Communications to expand optical systems portfolio

Reports confirm that Cisco and Acacia Communications have inked a definitive agreement, according to which Cisco would be acquiring Acacia for around $2.6 billion on a fully diluted basis, net of marketable securities and cash.

Cisco will pay $70 per share of Acacia in cash as per the terms of the deal. Acacia is an existing supplier of Cisco and is involved in design and manufacture of high-speed optical interconnect technologies which enable service providers, webscale firms and data center operators to meet consumers’ rapidly growing data demands.

Citing sources familiar with the matter, Cisco will support the existing clients of Acacia as well as new customers who require industry-leading transceivers, digital signal processing or photonic integrated circuit modules and coherent optics for deploying in data centers and networking products.

Cisco’s General Manager and Executive Vice President for Networking & Security business, David Goeckeler said that the company is aiming to reinvent all domains of the network, through its intent-based architectures, by innovating across silicon, optics and software. He implied that optical interconnect products are gaining traction as being strategically important, in conjunction with the explosion of bandwidth in this age of multi-cloud.

Goeckeler added that acquiring Acacia will enable Cisco to develop on the strength of its routing, switching and optical networking portfolio for addressing the most challenging demands of its customers.

Cisco is a well-established provider of optical systems for supporting webscale, enterprise, service provider and public sector customers. The products offered by the company tackle the power, performance and cost issues of customers. Taking over Acacia will advance the optical systems offerings of Cisco and allow existing and new customers to simply operations as well as reduce network complexities while transitioning to pluggable technology.

Acacia’s employees will supposedly become a part of the Optical Systems & Optics division of Cisco after the acquisition, and the deal is expected to close in the second half of Cisco’s FY2020.

Source Credits: https://newsroom.cisco.com/press-release-content?type=webcontent&articleId=2000889

  • share
  • Twitter
  • Facebook
  • LinkedIn

About Author

Saipriya Iyer

Saipriya Iyer    

Saipriya Iyer currently works as a content developer for GroundAlerts. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had previous experience of 3 years under her belt, she has dabbled with website ...

Read More >>

More News By Saipriya Iyer

iKure Techsoft looking to raise USD 5 million in Series A funding round
iKure Techsoft looking to raise USD 5 million in Series A funding round
By Saipriya Iyer

Ratan Tata funded iKure Techsoft, a technology-driven healthcare services startup, is reportedly planning to raise capital for expanding its presence in home grounds and beyond borders while strengthening its technology solutions. Sources with knowl...

Apple to launch self-driving cars with new battery technology in 2024
Apple to launch self-driving cars with new battery technology in 2024
By Saipriya Iyer

American multinational technology company, Apple Inc., has reportedly made advances in its self-driving car technology project and is planning on initiating the production by the year 2024. Although the tech giant has never publicly acknowledged thi...

Eurofins Technologies launches new product line for allergen detection
Eurofins Technologies launches new product line for allergen detection
By Saipriya Iyer

Leading distributor of test kits and systems for laboratory research, Eurofins Technologies, has reportedly introduced SENSIStrip Allergen, a new lateral flow device product line for detecting allergen in packaged food products. For those uninitiate...