Skip to content
Subscriber Only

Cisco Buys Acacia for $2.6 Billion to Add Optical Technology

  • Acacia’s systems help speed information flow in data centers
  • Purchase draws questions about existing customer relationships
Video player cover image
Cisco Acquires Acacia in $2.6 Billion Deal to Boost Networks
Updated on

Cisco Systems Inc. agreed to buy Acacia Communications Inc. for about $2.6 billion, the technology giant’s latest acquisition as it seeks technologies to meet customer demand for more robust networks.

The San Jose-based company will pay $70 a share, a 46% premium to Acacia’s closing price on Monday, the companies said in a statement Tuesday. The purchase price is about $2.6 billion on a fully diluted basis net of cash and marketable securities, and the deal is expected to close in the second half of Cisco’s fiscal 2020 year.