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Cisco completes $4.5B acquisition of optical interconnect giant Acacia

Written by Tue 2 Mar 2021

Companies put legal dispute behind them

Cisco has settled a legal dispute that threatened to jeopardise a planned multi-billion-dollar merger, with the company announcing its $4.5B acquisition of optical interconnect giant Acacia had at last closed.

The final closing figure is significantly higher than the $2.6B originally agreed. Acacia threatened to terminate that agreement and in January, and Cisco took them to court to prevent them from doing so. But in recent weeks the companies hashed out a new deal and put their disagreements to bed.

“I’m excited to announce that Cisco has completed its acquisition of Acacia,” wrote Bill Gartner, senior vice president and general manager of Cisco’s Optical Systems and Optics Group in a blog about the acquisition.

Acacia designs and manufactures high-speed optical interconnect products and technologies. Its tech is prized by data centre operators and cloud providers for its ability to provide extremely rapid access to a range of distributed IT resources across long distances.

Cisco also rates Acacia’s pluggable 400G solutions, which enable a converged network architecture that merges the IP and optical layers, something not achievable with conventional chassis-based systems.

400G is the new networking bandwidth standard, offering a fourfold increase in max data transfer speed compared to 100G, to address the bandwidth squeeze being placed on network infrastructure providers as global data consumption skyrockets.

“Acacia offers a complete portfolio of long-distance data-transmission solutions that address the full range of applications in the data-centre-interconnect and wide-area network segments for metro, regional, long haul, and subsea links,” Gartner added.

Written by Tue 2 Mar 2021

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