Cisco Systems Inc. (NASDAQ:CSCO) plans to acquire Acacia Communications (NASDAQ:ACIA) for $70 per share in a $2.6-billion deal on a fully diluted basis, the companies announced Tuesday.
An existing Cisco supplier, Acacia designs and manufactures high-speed, optical interconnect technologies that allow webscale companies, service providers, and data center operators to meet the fast-growing consumer demands for data.
As Cisco and Acacia come together, Cisco plans to support Acacia's existing customers and new customers that want industry-leading coherent optics, digital signal processing / photonic integrated circuit modules, and transceivers for use in networking products and data centers.
"By innovating across software, silicon and optics, Cisco is reinventing every domain of the network with our intent-based architectures," said Executive Vice President David Goeckeler.
"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."
Cisco offers a full portfolio of optical systems to support webscale, service provider, enterprise, and public sector customer segments. These optical systems address performance, power, and cost requirements. Acacia's technology will enrich Cisco's optical systems portfolio. It will also allow the growing number of customers transitioning from chassis-based systems to pluggable technology to simplify operations and reduce network complexities.
Cisco shares climbed 26 cents to $56.45, in the first hour of trade, while Acacia zoomed $16.82, or 35%, to $64.88
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