Cisco recently announced its intent to acquire privately-held Luxtera, a semiconductor company that uses silicon photonics to build integrated optics components.
Cisco will incorporate Luxtera’s technology across its internet-based networking portfolio, spanning enterprise, data center and service provider markets.
Cisco will pay $660 million in cash and assumed equity awards for the acquisition of Luxtera. The acquisition is expected to close in the third quarter of Cisco’s fiscal year 2019, subject to customary closing conditions and required regulatory approvals.
The acquisition will:
Future-proof networks for emerging applications: The combination of Cisco’s and Luxtera’s capabilities in 100GbE/400GbE optics, silicon, and process technologies will enable customers to build future-proof networks optimized for performance, reliability, and cost.
Expand Cisco’s 100GbE and 400GbE portfolio: Integration of Luxtera and Cisco’s optical transceiver portfolio will broaden Cisco’s offering of 100GbE and 400GbE optics.
Upon completion of the transaction, Luxtera employees will join Cisco’s Optics business under David Goeckeler, executive vice president and general manager, networking and security.