Cisco To Gain Integrated Optics Technology With Luxtera Buyout
Zacks Investment Research | Dec 18, 2018 09:42PM ET
Cisco (NASDAQ:CSCO) put all speculations to rest by confirming its intention to buy Luxtera. Per the terms of the deal, Cisco will pay approximately $660 million in cash, which represents roughly a threefold appreciation over valuation of $208 million as in 2014 according to Pitchbook data.
Cisco anticipates concluding the buyout in the third quarter of fiscal 2019, subject to customary regulatory approvals.
Headquartered in Carlsbad, CA, Luxtera’s silicon photonics technology offers high speed of data transfer across video streaming, cloud and mobile.
Cisco intends to deploy Luxtera’s integrated optics technology capabilities across its robust network portfolio featuring capacities ranging from 100GbE (Gigabit Ethernet) to 400GbE. This will enable Cisco to provide ultra-high, data-heavy bandwidth services toCSPs and network service providers.
Further, the deal will help Cisco add more fundamental technology to its open-source software in order to build networking machinery
Notably, shares of Cisco have returned 18.6% year to date outperforming the Zacks Investment Research
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