7/9/2019, 2:23 PM (Source: TeleTrader)
more TeleTrader news

Cisco to buy Acacia Communications for $2.6B

Cisco Systems, Inc. announced on Tuesday its intent to acquire semiconductor maker Acacia Communications in a cash deal worth $2.6 billion on a fully diluted basis, or $70 per share.

"Cisco is building an industry-leading portfolio of optical, silicon, and software technologies to advance our intent-based networking, and Acacia’s coherent optics technology will build on the strength of that portfolio," the company said in a blog post. Cisco pointed out that Acacia is already a supplier for the company and added its employees will join Cisco’s Optical Systems and Optics business once the acquisition is completed.

The transaction is subject to customary conditions and regulatory approval and is expected to close in the second half of the fiscal year 2020.

Acacia shares soared 37.45% in premarket trading on the announcement, while Cisco's stock lost 1.03%.

Breaking the News / NP