Cisco sets to further enhance its networking might with the $2.6 billion acquisition of Acacia Communications, a manufacturer of high-speed coherent optical interconnect technologies.
Already an existing Cisco supplier, Acacia should boost the Cisco software and networking portfolio, as well as help service providers and datacentre operators handle exponentially growing data demand. Cisco adds the technology will help customers transition from chassis-based systems to pluggable technology, simplifying operations and reducing network complexities.
Acacia technology is based on coherent optics, with applications including algorithm development, ASIC design and verification for the Digital Signal Processing (DSP), RF design and module packaging/ integration. In addition, the company uses silicon photonics for the integration of multiple photonic functions for coherent optics, increasing the density and reducing the cost of the technology.
"Coherent technology has been a game-changer for optical networking and continues to evolve with the deployment of pluggable coherent optics," Acacia says. "Upon close, Cisco and Acacia will continue to serve and support existing Acacia customers. 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."
The acquisition is set to close on fiscal H2 2020, with Acacia employees joining the Cisco Optical Systems and Optics business within the networking and security division.
