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Cisco Acquisition Sends Acacia Communications Shares into Orbit

Streetwise Reports, Streetwise Reports
0 Comments| July 10, 2019

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Acacia Communications announced today that it will be acquired by Cisco Systems in an all cash deal.

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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%).

1) Stephen Hytha compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. He or members of his household own securities of the following companies mentioned in the article: None. He or members of his household are paid by the following companies mentioned in this article: None.
2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees.
3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.
4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the interview or the decision to write an article until three business days after the publication of the interview or article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases.

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