Cisco, the computer networking giant of America, has announced a merger deal with optical Technology specialist Acacia for $4.5 billion. The plan of the former will be to use the technology acquired from the latter to strengthen its stand in the Internet of Things (IoT) world.
After the deal, Cisco has announced that it will support all existing customers of Acacia along with the new ones that have joined the clientele base regarding coherent optics, digital signal processing, photonic integrated circuit modules and transceivers.
Trade analysts say that Cisco will pay $115 per share to Acacia and will plan to close the deal by the October 2021. It is said to help the former in closing the 5G network rollout deals in countries like Germany, Austria and US.
“We are pleased to have agreed with Cisco and believe in transforming the optical industries with our future innovation- siliconization of optical interconnects,”, said Raj Shanmugaraj, the CEO of Acacia.
Technically, Acacia develops optical interconnect products that are aimed to transform the communications industry through improvements in performance, capacity and cost. It is said to revolutionize the security of Internet of Things offering in a cost effective way.
Cisco has been looking to offer a secure mode of communication between IoT and is planning to use the optical technology of Acacia to achieve its objectives.