Cisco Pays $660M for Luxtera

Cisco announced the intent to acquire privately-held Luxtera, a semiconductor company based in Carlsbad, CA, that uses silicon photonics to build integrated optics capabilities for webscale and enterprise data centers, service provider market segments, and other customers. Luxtera’s technology, design, and manufacturing innovation significantly improves chip scale and performance, while lowering costs. Cisco plans to incorporate Luxtera’s technology across its intent-based networking portfolio, spanning enterprise, data center, and service provider markets.

(Source: Cisco)

“With Cisco’s 2018 Visual Networking Index projecting that global Internet traffic will increase threefold over the next five years, our customers are facing an exponential demand for Internet bandwidth,” said David Goeckeler, executive vice president and general manager, networking and security business at Cisco. “Optics is a fundamental technology to enable this future. Coupled with our silicon and optics innovation, Luxtera will allow our customers to build the biggest, fastest, and most efficient networks in the world.”

Integration of Luxtera and Cisco’s optical transceiver portfolio will broaden Cisco’s offering of 100 GbE and 400 GbE optics. As system port capacity increases from 100 GbE to 400 GbE and beyond, optics plays an increasingly important role in addressing network infrastructure constraints, particularly density, and power requirements.

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. Upon completion of the transaction, Luxtera employees will join Cisco’s Optics business under David Goeckeler. (Source: Cisco)

Links: Cisco Systems, Inc. San Jose, CA, USA • Luxtera Inc., Carlsbad, CA, USA

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