Cisco To Buy Acacia Communications For About $2.6 Bln

(RTTNews) - Cisco (CSCO) said Tuesday that it agreed to buy Acacia Communications (ACIA) for $70.00 per share in cash or about $2.6 billion on a fully diluted basis, net of cash and marketable securities.

In the pre-maket trade, ACIA is trading at $66.40, up $18.34 or 38.16 percent. But CSCO is trading at $55.62, down $0.57 or 1.01 percent.

Cisco expects to close Acacia deal during the second half of fiscal year 2020.

Cisco noted that Acacia employees will join Cisco's Optical Systems and Optics business within the networking and security business under David Goeckeler.

Acacia develops, manufactures and sells high-speed coherent optical interconnect products that are designed to transform communications networks through improvements in performance, capacity and cost.