Cisco completes $4.5 billion Acacia Communications acquisition

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Cisco has reinforced its commitment to optics with the acquisition of optical networking strategy firm Acacia Communications for $4.5 billion, following a majority approval from Acacia’s board.

The Massachusetts-based business designs and manufactures high-speed, optical interconnect technologies that allow webscale companies, service providers and data centre operators to meet the fast-growing consumer demand for data.

Cisco said the acquisition will enhance its ‘Internet for the Future’ strategy with market-leading coherent optical solutions for new customers.

"We are thrilled to welcome the Acacia team to Cisco," commented Chuck Robbins, Cisco chairman and CEO. "Our Internet for the Future strategy puts Acacia's high-speed coherent optics technologies front and centre as we work to empower webscale companies, service providers and data center operators to meet today's fast-growing demands for data."

Acacia provides a portfolio of long-distance data transmission solutions that address the full range of applications in the Data Center Interconnect and Wide Area Network segments for Metro, Regional, Long Haul and Subsea links.

Cisco said the takeover addresses the transition away from chassis-based optical line systems to pluggable technology, simplifying operations and reducing the complexity of managing multiple layers in the network. These pluggable modules are designed to be plugged directly into a router or switch.

“Cisco with Acacia is positioned to lead the 400G+ market insertion and transition with a disruptive technology that collapses the IP and optical layers in the form of pluggable coherent technology,” explained Bill Gartner, SVP and general manager of Cisco’s Optical Systems & Optics Group.

The firm also emphasised its commitment to supporting Acacia’s existing customers alongside new customers that want coherent optics, digital signal processing/photonic integrated circuit modules, as well as transceivers for use in networking products and data centres.

Acacia employees also join Cisco’s Optics business as part of its Mass-Scale Infrastructure Group.

“With leadership in key assets in silicon and optics, Cisco is poised like no other company in the industry to offer our customers solutions in the form they want to consume – whether that means discrete components or fully integrated solutions – for the new Internet,” Gartner added.

Daniel Todd

Dan is a freelance writer and regular contributor to ChannelPro, covering the latest news stories across the IT, technology, and channel landscapes. Topics regularly cover cloud technologies, cyber security, software and operating system guides, and the latest mergers and acquisitions.

A journalism graduate from Leeds Beckett University, he combines a passion for the written word with a keen interest in the latest technology and its influence in an increasingly connected world.

He started writing for ChannelPro back in 2016, focusing on a mixture of news and technology guides, before becoming a regular contributor to ITPro. Elsewhere, he has previously written news and features across a range of other topics, including sport, music, and general news.