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Cisco Acacia Wall Streetjournal, Cisco buys Acacia for $4.5B ($115/share), reported on the WallStreetJournal

In a January 2021 report by the Wall Street Journal, Cisco agreed to buy Acacia for $115 per share, making it worth around $4.5 billion on a fully diluted basis.

Key Takes:

  • In January 2021, Cisco agreed to buy Acacia Communications for $115 per share, valued at $4.5 billion
  • The purchase price was 64% higher than before and the deal was officially completed on March 1st, 2021
  • Acacia makes high-speed optical interconnect products and the acquisition fuels Cisco’s “Internet for the Future” strategy
  • Acacia’s employees and its NASDAQ listing have been delisted and it is now part of Cisco’s Mass-Scale Infrastructure Group

The purchase price of Acacia Communications Inch was boosted by 64% as Networking-equipment giant Cisco System Corp. announced buying of Acacia for a whopping $4.5 billion. [Cisco Acacia Wall StreetJournal]

On a fully diluted basis, the optical technologies maker would be sold for $115 a share, as per Cisco Systems. Acacia Communications is based in Maynard, Massachusetts, and makes high-speed optical interconnect products from communication networks.

A week before the deal was announced, Cisco revealed that the company wanted Acacia back in 2019 as well, for $70 a share, but the Chinese regulatory authorities didn’t give the approval on time, which terminated the deal. 

On March 1st, 2021, Cisco officially completed the acquisition of Acacia Communications as followed by the approval of Acacia’s shareholders. Now that Acacia’s future-proof high-speed communication technologies are officially a part of Cisco, a specialist in this domain, Cisco’s Internet for the Future strategy will now be fueled further with this acquisition. 

Furthermore, Cisco is committed to existing customers of Acacia as well as growing the customer base by leveraging industry-leading communication technologies such as digital signal processing, transceivers, and coherent optics. 

“We are thrilled to welcome the Acacia team to Cisco… Our Internet for the Future strategy puts Acacia’s high-speed coherent optics technologies front and center as we work to empower webscale companies, service providers, and data center operators to meet today’s fast-growing demands for data,” stated the CEO and chairman of Cisco, Chuck Robbins. [Cisco Acacia Wall StreetJournal]

As Acacia is now part of Cisco, it is not a publicly traded company anymore. The NASDAQ was requested by Acacia to delist the stock with the Securities and Exchange Commission. All the Acacia employees would also be joining Cisco as part of the Mass-Scale Infrastructure Group. 

About Cisco

Cisco is an industry leader in networking equipment, you may say that Cisco powers a big part of the internet we use today. All over the world, their networking devices are used to run the internet smoothly. From data centers to the average house, their devices are seen everywhere. 

What’s unique about Cisco is its commitment to innovation, network security, and empowering the future of network communication through groundbreaking infrastructure. [Cisco Acacia Wall StreetJournal]

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