Menu
Cisco and Acacia make up with $4.5B acquisition pact

Cisco and Acacia make up with $4.5B acquisition pact

Tech giant raised takeover offer for Acacia to $4.5 billion, up from $2.6 billion, in a move aimed at boosting Cisco's optical system strategy

Credit: Dreamstime

After some saber-rattling, Cisco has sweetened the pot to acquire optical technology firm Acacia. The amended agreement calls for Cisco to pay $4.5 billion instead of the originally agreed upon $2.6 billion deal.

The companies said the amended acquisition should close by the end of the first calendar quarter of 2021, but it is still subject to closing conditions, including Acacia stockholder approval. Upon completion of the acquisition, Acacia CEO Raj Shanmugaraj and company employees will join Cisco's Optics business.

The companies had filed court cases against each other this month. Cisco filed for a temporary restraining order on January 8 to prevent Acacia from terminating its acquisition agreement with the company. Cisco's move followed an Acacia proclamation that stated the company "has elected to terminate its merger agreement with Cisco Systems, Inc., effective immediately."

The revamped agreement puts those cases to rest and demonstrates how important optical systems – such as digital signal processing, photonic integrated circuit modules, and transceivers for use in networking products and data centres – are for Cisco now and in the future.

Acacia develops, manufactures and sells high-speed coherent optical interconnect products that are designed to transform networks linking data centres, cloud and service providers.

"I am delighted that Cisco and Acacia have decided to come together in this mutual deal," said Cisco chairman and CEO Chuck Robbins in a statement. "We look forward to welcoming Raj and the Acacia team to Cisco to offer our customers world-class coherent optical solutions to power the Internet for the future."

"Together we will ignite our strategy to transform the optical world as we know it, with innovative solutions to boost network capacity inside and outside the data centre," said Bill Gartner, senior vice president and general manager, Cisco Optical Systems and Optics Group.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags ciscoAcacia

Featured

Slideshows

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards

The leading female front runners of the New Zealand ICT industry joined together for the annual Reseller News Women in ICT Awards event at the Hilton in Auckland, during which hundreds of guests celebrated 13 outstanding individuals who won awards, chosen from more than 50 finalists representing over 30 organisations.

Leading female front runners honoured at the 2020 Reseller News Women in ICT Awards
Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners

More than 500 channel leaders gathered in Auckland on 21 October at the ​Reseller News Innovation Awards ​2020 to celebrate the achievements of the New Zealand technology industry's top partners, start-ups, vendors, distributors and individuals.

Channel gathers to celebrate the Reseller News Innovation Awards 2020 winners
Show Comments