Cisco (NASDAQ: CSCO) is to acquire Acacia Communications (NASDAQ: ACIA), a Maynard, Massachusetts based company that develops, manufactures and sells high-speed coherent optical interconnect products for webscale companies, service providers, and data center operators.
Under the terms of the deal, expected to close during the second half of Cisco’s FY2020, subject to customary closing conditions and required regulatory approvals, Cisco has agreed to acquire Acacia for $70.00 per share in cash, or for approximately $2.6 billion.
Cisco offers a full portfolio of optical systems to support webscale, service provider, enterprise, and public sector customer segments. Acacia’s technology will enrich Cisco’s optical systems portfolio and allow customers transitioning from chassis-based systems to pluggable technology to simplify operations and reduce network complexities.
As the two companies merge, Cisco plans to support Acacia’s existing customers and new customers which need coherent optics, digital signal processing/photonic integrated circuit modules, and transceivers for use in networking products and data centers.
Upon completion of this transaction, Acacia employees, led by Led by Raj Shanmugaraj, president and chief executive officer, will join Cisco’s Optical Systems and Optics business within the networking and security business under David Goeckeler.