Cisco to acquire Acacia Communications for USD 2.6 billion

Cisco and Acacia Communications entered into a definitive agreement under which Cisco agreed to acquire Acacia. An existing Cisco supplier, Acacia designs and manufactures high-speed, optical interconnect technologies that allow webscale companies, service providers, and data centre operators to meet the fast-growing consumer demands for data.

Under the terms of the agreement, Cisco agreed to acquire Acacia for USD 70.00 per share in cash, or for approximately USD 2.6 billion on a fully diluted basis, net of cash and marketable securities. As Cisco and Acacia come together, Cisco sai dit plans to support Acacia's existing customers and new customers that want coherent optics, digital signal processing / photonic integrated circuit modules, and transceivers for use in networking products and data centres.

Acacia's technology will enrich Cisco's optical systems portfolio.

The acquisition is expected to close during the second half of Cisco's FY2020, subject to customary closing conditions and required regulatory approvals. Upon completion of this transaction, Acacia employees will join Cisco's Optical Systems and Optics business within the networking and security business under David Goeckeler.