Cisco Intends to Acquire Acacia Communications

Cisco (NASDAQ: CSCO) and Acacia Communications (NASDAQ: ACIA) today announced they've joined right into a definitive agreement to which Cisco has decided to acquire Acacia. A current Cisco supplier, Acacia designs and manufactures high-speed, optical interconnect technologies that permit webscale companies, providers, and knowledge center operators to satisfy the short-growing consumer calls for data.

Underneath the the agreement, Cisco has decided to acquire Acacia for $70.00 per be part of cash, or roughly $2.6 billion on the fully diluted basis, internet of money and marketable securities. As Cisco and Acacia get together, Cisco intends to support Acacia’s existing customers and new clients that are looking industry-leading coherent optics, digital signal processing / photonic integrated circuit modules, and transceivers to be used in networking products and knowledge centers.

“By innovating across software, plastic and optics, Cisco is reinventing every domain from the network with this intent-based architectures,” stated David Goeckeler, executive v . p . and gm of Cisco’s networking and security business. “With the explosion of bandwidth within the multi-cloud era, optical interconnect technology is becoming more and more proper. The purchase of Acacia will let us develop the effectiveness of our switching, routing and optical networking portfolio to deal with our customers’ most demanding needs.”

Cisco provides a full portfolio of optical systems to aid webscale, company, enterprise, and public sector customer segments. These optical systems address performance, power, and price needs. Acacia’s technology will enrich Cisco’s optical systems portfolio. It will likewise permit the growing quantity of customers transitioning from chassis-based systems to pluggable technology to simplify operations and lower network complexities.

“Coherent technology is a game-changer for optical networking and is constantly on the evolve using the deployment of pluggable coherent optics,” stated Raj Shanmugaraj, president and ceo, Acacia. “Upon close, Cisco and Acacia continuously serve and support existing Acacia customers. By integrating Acaciatechnology into Cisco’s networking portfolio, we feel we are able to accelerate the popularity toward coherent technology and pluggable solutions while accommodating a bigger footprint of consumers worldwide.”

The purchase is anticipated to shut throughout the other half of Cisco’s FY2020, susceptible to customary closing conditions and needed regulatory approvals. When completed of the transaction, Acacia employees will join Cisco’s Optical Systems and Optics business inside the networking and security business under David Goeckeler.

About Acacia Communications

Acacia Communications develops, manufactures and sells high-speed coherent optical interconnect products that can transform communications systems through enhancements in performance, capacity and price. By applying optical interconnect technology inside a plastic-based platform, a procedure Acacia Communications describes because the “siliconization of optical interconnect,” Acacia Communications has the capacity to offer products at greater speeds and density with lower power consumption, that meet the requirements of cloud and repair providers and could be easily integrated inside a cost-effective manner with existing network equipment.