Acquisition enhances kit maker’s expertise in coherent optical interconnect products

Cisco has struck a $2.6 billion deal to acquire specialist vendor Acacia Communications.

Acacia makes coherent optical interconnect products, helping telcos, data centre providers, and Webscale players keep pace with the ever-increasing consumer appetite for data.

"Functions that were traditionally delivered in separate chassis-based solutions in a separate optical layer will be available in a pluggable form factor as part of the IP layer – offering significant benefits for network operators in terms of operational simplicity and lower cost," explained Bill Gartner, head of Cisco’s Optical Systems and Optics business, in a blog post.

"Coherent technology has been a game-changer for optical networking and continues to evolve with the deployment of pluggable coherent optics," added Acacia CEO Raj Shanmugaraj, in a separate statement.

"By integrating Acacia technology into Cisco’s networking portfolio, we believe we can accelerate the trend toward coherent technology and pluggable solutions while accommodating a larger footprint of customers worldwide," he said.

Acacia is already one of Cisco’s suppliers; bringing it into the fold will bolster the latter’s optical systems portfolio. The deal is expected to complete during the second half of Cisco’s fiscal 2020, whereupon Acacia and its employees will become part of Cisco’s aforementioned Optical Systems and Optics division.

"Upon close, Cisco and Acacia will continue to serve and support existing Acacia customers," Shanmugaraj said.