Cisco to Buy Acacia Communications for About $2.6 Billion -- Update
July 09 2019 - 10:08AM
Dow Jones News
By Colin Kellaher
Cisco Systems Inc. on Tuesday said it agreed to buy Acacia
Communications Inc. for about $2.6 billion, in a deal that boosts
Cisco's optical networking portfolio.
Cisco said it will pay $70 a share in cash for Acacia, a roughly
45.7% premium to the company's closing price of $48.06 on
Monday.
Acacia, of Maynard, Mass., is a maker of high-speed, optical
interconnect technologies and a current supplier to San Jose-based
Cisco.
Cisco said it plans to complete the acquisition during the
second half of fiscal 2020.
"With the explosion of bandwidth in the multi-cloud era, optical
interconnect technologies are becoming increasingly strategic,"
said David Goeckeler, who heads Cisco's networking and security
business. "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."
Cisco said Acacia's employees will join its optical systems and
optics business within the networking and security business under
Mr. Goeckeler.
Shares of Acacia surged 38.3% to $66.45 in premarket trading
Tuesday. Cisco shares slipped about 1.2%.
Write to Colin Kellaher at colin.kellaher@wsj.com
(END) Dow Jones Newswires
July 09, 2019 09:53 ET (13:53 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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