Cisco acquires Acacia Communications for $2.6 billion

Cisco has announced that it will acquire Acacia Communications for 2.6 billion dollars (2.3 billion euros). Acacia Communications provides optical interconnect technology to Cisco.

Acacia Communications develops algorithms for processing digital signals, writes ZDNet. It also creates technology for ASIC design and verification, software, integration and optics optimization.

Technology woven into the Cisco portfolio

Cisco pays $70 per share for Acacia Communications. The supplier’s existing customers will continue to be supported after the takeover. New customers can also use Acacia Communications products that are used in network equipment.

The company claims to have acquired Acacia Communications as it can use the company’s technology throughout its network portfolio targeting cloud providers, service providers and enterprises.

The acquisition is expected to be completed in the second half of the current fiscal year. Acacia Communications is then part of the Optical Systems department of Cisco.

Sentryo SAS

The acquisition of Acacia Communications is the second for Cisco in a short time. In June it was announced that the company also acquired the French provider of cybersecurity solutions for industrial control systems (ICS) Sentryo SAS.

Sentryo SAS has ICS CyberVision as its main product. This gives engineers complete visibility over all equipment connected to their industrial networks. Vulnerabilities on those networks are identified by the service. It can also take decisions that can ensure the integrity of the systems.

By combining Ciscos intent-based networking architecture with Sentryo’s capabilities, customers can capture IT benefits, manage networks and devices on a scale and enable collaboration between IT and AT departments, and better protect their assets and data,” said Rob Salvagno, vice president of corporate development and investments.

There was also cooperation with Sentryo SAS for the acquisition. Sentryo SAS’ Edge Sensor and Cisco’s industrial networking hardware are integrated into Cisco’s IOx application framework. The acquisition of Sentryo SAS is expected to be completed in the first fiscal quarter of Cisco. That quarter closes on October 26th.