Cisco Systems to buy Acacia Communications Inc for $2.84 billion in cash

Network gear maker Cisco Systems Inc said on Tuesday it would buy optical component maker Acacia Communications Inc for $2.84 billion in cash. The $70 per share offer represents a premium of about 46% to Acacia’s closing price on Monday.

The deal is Cisco’s biggest acquisition for Cisco since its $3.7-billion purchase of business performance monitoring software company AppDynamics in 2017. Shares of Acacia rose about 40% to $67.30, while those of Cisco were down nearly 1% at $55.80, reports Reuters.

Acacia Communications

Excluding Acacia’s cash and marketable securities, the deal is valued at $2.6 billion, Cisco said.

The acquisition is expected to close in during the second half of Cisco’s full-year 2020. Maynard, Massachusetts based Acacia, also a Cisco supplier, designs and manufactures high-speed optical components, and counts telecom service providers and data center operators as customers.

Acacia Communications is an optical networking strategy and technology company that empowers cloud and service providers to meet the fast-growing consumer demands for data. Acacia’s innovative silicon-based high speed optical interconnect products accelerate network scalability through advancements in performance, capacity, and cost.

This article has been posted by a News Hour Correspondent. For queries, please contact through [email protected]
No Comments