Sunday, January 24, 2021

Acacia joins Cisco for a check for $ 4.5 billion

Contesting its takeover, Acacia forced Cisco to re-evaluate its offer. The latter will add nearly $ 2 billion more to get their hands on the optical network specialist for 4.5 billion.

Relations between Acacia and Cisco have calmed down. The two parties were torn earlier this week  over the acquisition of the optics specialist by Cisco. The latter has decided to raise its purchase offer to $ 4.5 billion instead of the initial 2.6 billion.

Both companies have said the amended acquisition is expected to close by the end of the first calendar quarter of 2021, but it is still subject to closing conditions, including approval by Acacia shareholders. Once the acquisition is completed, Acacia CEO Raj Shanmugaraj and company employees will join Cisco's Optics division cisco voice of the engineer.

Photonics a major issue for Cisco The story nevertheless almost changed at the beginning of the week when we learned that Cisco had taken legal action against Acacia. The equipment maker had requested a temporary restraining order in the Delaware court on January 8 to prevent Acacia from terminating its acquisition agreement with the company. Acacia executives considered the agreement to be null and void after obtaining out-of-time approval from the Chinese Administration for Market Regulation (SAMR).

By significantly increasing its offer, Cisco shows how strategic optics are in its roadmap and in particular Acacia solutions. It develops, manufactures and sells consistent high-speed optical interconnect products to accelerate networks between data centers, cloud operators and service providers.

No comments:

Post a Comment

Run Your Applications Locally, Over Your Organization's Network, or Anywhere in the World

Applications are easy to use and with COMSOL Server™, they are easy to access, deploy, and share, too. You can install the COMSOL Server™ so...