Reportedly, Cisco Systems, Inc. (CSCO) is a global technology leader that designs, manufactures, and sells Internet Protocol-based networking and other communications technology, announced this week that they have agreed to acquire Acacia Communications (NasdaqGS: ACIA), an optical networking strategy benefitting web-scale companies, data center operators and service providers to fulfill the growing consumer demands of data. As per the terms of the agreement, Cisco to buy Acacia, headquartered in Maynard, Massachusetts which is also its existing supplier for $70.00 per share in cash for an amount of $2.6 billion approximately. Cisco is reported to be providing full support to Acacia’s new and existing customers for the needs related to networking products and data centers and Acacia’s technology to refine and enhance Cisco’s working of optical systems and a smooth transition chassis-based systems to pluggable technology.
“By innovating across software, silicon, and optics, Cisco is reinventing every domain of the network with our intent-based architectures,”, “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.” stated David Goeckeler, executive vice president and general manager of Cisco’s networking and security business.
“Upon close, Cisco and Acacia will continue to serve and support existing Acacia customers. By integrating Acacia technology into Cisco’s networking portfolio, we believe we can accelerate the trend toward coherent technology and pluggable solutions while accommodating a larger footprint of customer’s worldwide,” stated Raj Shanmugaraj, President and CEO, Acacia.
The deal is expected to close in the second half of Cisco’s FY2020 based on approvals and other customary closing formalities, after which Acacia employees to join Cisco’s networking and security business under David Goeckeler leadership.
Investor Call and Details:
Cisco and Acacia Communications hosted a call on July 9 to discuss the contract and its terms. The replay for which is available on July 9, 2019, to July 23, 2019, on Cisco’s website at http://investor.cisco.com and on the following numbers: 800-568-4204 or 203-369-3290
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