After twists and turns, Cisco successfully acquired Acacia, an optical technology company. The contract amount was $4.5 billion, an increase of $1.8 billion from the $2.6 billion originally agreed. The two companies said the revised acquisition contract would end in the first quarter of Cisco's 2021 fiscal year, but there is still a process for Acacia shareholder approval. When the acquisition is completed, Acacia CEO Raj Senmugarage and employees will be incorporated into Cisco's Optics division.
Prior to this, the two companies recently sued each other to the court. When Acacia announced that it would immediately terminate its merger agreement with Cisco, Cisco requested a court order to prevent Acacia from breaking the deal.
The revised acquisition agreement between the two companies clarifies how important networking products and optical systems such as digital signal processing, optical built-in circuit modules, and transceivers for use in the data center and for Cisco today and in the future. Acacia is a company that develops, manufactures, and sells high-speed optical connection products. It improves the network that connects the data center to the cloud and service providers.
"We are pleased to announce the merger between Cisco and Acacia on the terms of mutual satisfaction. We welcome the team from Raj and Acacia to Cisco. We are able to provide our customers with world-class optical solutions that will enable the Internet of the future," said Chuck Robinson, Chairman of Cisco "He said. Bill Gartner, senior vice president of Cisco's Optical Systems and Optics Group, said, "We will use our innovative solutions to drive our strategy to transform our optical products and improve network performance inside and outside the data center."
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