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Cisco Agrees to Buy Acacia, Its Optical Interconnection Supplier, for $2.6B

Cisco agreed to buy its supplier Acacia Communications, paying about $2.6 billion cash for the optical interconnect technology maker for service providers, data centers and others using lots of data. Purchase of the fabless semiconductor company is expected to close…

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in the second half of Cisco's fiscal 2020, and needs some regulatory approvals. The buy "suggests that Cisco intends to compete directly with the optical systems leaders Huawei, Ciena and Nokia," Raymond James analyst Simon Leopold wrote investors after Tuesday's announcement.