Cisco Acquisition Sends Acacia Communications Shares into Orbit
Source: Streetwise Reports
July 10, 2019 (Investorideas.com Newswire) Acacia Communications announced today that it will be acquired by Cisco Systems in an all cash deal.
Acacia Communications Inc. (ACIA:NASDAQ) announced this morning that it has entered into a definitive agreement to be acquired by Cisco Systems Inc. (CSCO:NASDAQ) in an all cash deal for $70 per fully diluted share net of cash and marketable securities, or approximately $2.6 billion. Cisco expects that the deal will close in the second half of its fiscal year 2020 subject to regulatory approval.
David Goeckeler, EVP/GM of Cisco's networking and security business outlined the rationale for the takeover as follows: "Optical interconnect technologies are becoming increasingly strategic with the explosion of bandwidth in the multi-cloud era. The Acacia acquisition will allow us to build on the strength of our switching, routing and optical networking portfolio to address our customers most demanding requirements."
President and CEO of Acacia Raj Shanmugaraj stated that he believes that integrating his firm's technology into Cisco's networking portfolio will accelerate the trend toward coherent technology and pluggable solutions accommodating a larger footprint of customers worldwide.
Acacia is an existing supplier of Cisco's that designs and manufactures high-speed optical interconnect technologies allowing webscale companies, service providers and data center operators to meet the fast-growing consumer demands for data.
Cisco is known worldwide as being engaged in designing and selling a range of technologies across networking, security, collaboration, applications and the cloud. It is best known for technologies for infrastructure platforms including switching, routing, data center server products and wireless designed to work in sync to deliver networking capabilities and transport and store data.
Acacia shares are presently up 35.39% ($65.07/share,+$17.01) over yesterday's close in greater than 12-times average volume. The shares opened today at $65.575/share after Monday's close of $48.06 and today have traded between $64.51 to $66.24/share. Serial acquirer Cisco's shares are currently trading at normal average volumes at $56.49 up $0.30 (+0.53%).
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