Cisco to acquire Acacia for $2.6 billion

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Cisco is acquiring Acacia Communications for $2.6 billion. Acacia, an existing Cisco supplier, designs and manufactures high-speed, optical interconnect technologies.

In a statement, Cisco said the company plans to support Acacia’s existing customers.

David Goeckeler, executive vice president and general manager of Cisco’s networking and security business, said in a statement: “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.”

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.

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