Cisco to buy Acacia Communications in $2.6bn deal

By hotmaillogin

Veteran internet communications tech giant Cisco announced today its entrance into an agreement with Massachusetts-based high-speed coherent optical interconnect product manufacturer Acacia Communications. The acquisition is part of Cisco’s initiative to pursue making its networks faster, more simple and more secure. 

According to the terms of the deal, Cisco will pay US$70 per share of Acacia in cash, for a total consideration of $2.6bn. 

Acacia is already an existing supplier to Cisco, specializing in the design and manufacture of high-speed, optical interconnect technologies that allow webscale companies, service providers, and data center operators to meet the fast-growing consumer demands for data.

"By innovating across software, silicon and optics, Cisco is reinventing every domain of the network with our intent-based architectures," said David Goeckeler, executive vice president and general manager of Cisco's networking and security business. "With the explosion of bandwidth in the multi-cloud era, optical interconnect technologies are becoming increasingly strategic. The acquisition of Acacia will allow us to build on the strength of our switching, routing and optical networking portfolio to address our customers' most demanding requirements."

SEE ALSO: 

Upon completion of the acquisition, Acacia employees will join Cisco's Optical Systems and Optics business within the networking and security business under Goeckeler. 

"Coherent technology has been a game-changer for optical networking and continues to evolve with the deployment of pluggable coherent optics," said Raj Shanmugaraj, president and chief executive officer, Acacia. "Upon close, Cisco and Acacia will continue to serve and support existing Acacia customers. By integrating Acacia technology into Cisco's networking portfolio, we believe we can accelerate the trend toward coherent technology and pluggable solutions while accommodating a larger footprint of customers worldwide."

The deal is expected to close during the second half of 2020, and awaits regulatory approval.

Share
Share

Featured Articles

Sustainability, ESG, net zero in focus at must-attend event

Sustainability takes centre stage at two-day hybrid conference featuring thought leaders covering circular economy, scope 3, ESG, B Corp, net zero, DE&I

Must-attend sustainability events for executives in 2022/23

Discuss and debate the most pressing issues around sustainability at these nine executive events – from London to Abu Dhabi, San Diego to Singapore

Meet the CEO on a mission to nurture women leaders in Africa

The argument for women leaders in Africa is compelling, yet numbers are small. But one female leader is on a mission to change that – Awamary Lowe-Khan

BCG's Daniel Weise on supply chain and procurement strategy

Leadership & Strategy

Flexible work perks heat up as the war on talent rages

Human Capital

Meet the COO: Former Israel Defense Force cyber lead Parnes

Technology & AI