Cisco to Acquire Optical Interconnect Giant Acacia for $2.6 B

Cisco has agreed to pay $2.6 billion to acquire Acacia Communications, a developer, manufacturer, and seller of high-speed coherent optical interconnect products, to allow growth in Cisco’s switching, routing, and optical networking portfolio.

Under the terms of the arrangement, Cisco has agreed to acquire Acacia for $70 per share in cash, or for approximately $2.6 billion on a fully diluted basis, net of cash and marketable securities. The acquisition is expected to close during the second half of Cisco’s 2020 fiscal year, 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 Cisco leadership.

An existing Cisco supplier, Acacia, headquartered in Maynard, Mass., designs and manufactures high-speed, optical interconnect technologies that allow webscale companies, service providers, and data center operators to meet demands for data.

Raj Shanmugaraj, president and chief executive officer of Acacia, said integrating Acacia technology into Cisco’s networking group will speed the trend toward coherent technology and pluggable solutions.

“Coherent technology has been a game-changer for optical networking and continues to evolve with the deployment of pluggable coherent optics,” he said.