Cisco will acquire US-based optical networking subsystems manufacturer CoreOptics. Under the terms of the agreement, Cisco will pay approximately USD 99 million in cash and retention-based incentives in exchange for all shares of CoreOptics. CoreOptics has the majority of its employee base in Nuremberg and Gerlingen, Germany, and this acquisition will enable Cisco to equip service provider customers with 100 Gbps transmission technology to scale the networks to meet the demands of IP traffic driven by video, mobility and cloud services. The acquisition of CoreOptics expands Cisco's optical presence in Europe, builds on its existing European operations in Monza, Italy, and will contribute to continued development in optical networking. Upon completion of the acquisition, CoreOptics employees will become part of the Cisco Service Provider Technology Group and work with Cisco's existing optical engineering teams in Monza, Italy; Bangalore, India; and Richardson, Texas. The acquisition is subject to customary closing conditions and is expected to close in the second half of calendar year.
