Cisco's $660 million Luxtera acquisition to broaden 100 and 400GbE optics offering

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Cisco is to acquire semiconductor company, Luxtera for $660 million in cash, with the intention to incorporate its technology across the company’s intent-based networking portfolio, spanning enterprise, data centre and service provider markets.

The acquisition is designed to expand Cisco's 100GbE and 400GbE portfolio. It will also future-proof networks for emerging applications such as distributed cloud, mobility, and IoT applications, which are creating more strain on existing communications infrastructure.

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 business. 

Goeckeler commented: ‘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. 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.’

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.

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