Cisco’s Acquisition of Acacia in Jeopardy

S. Schuchart

Summary Bullets:

  • Optical technologies are vitally important for networking; copper has reached its physical limitations.
  • If the deal cannot be consummated, it will be a huge blow to Cisco’s optical technology ambitions.

In July 2019, Cisco announced its intent to acquire high-speed optical interconnect supplier Acacia for approximately USD 2.6 billion. (GlobalData subscribers can read Emir Halilovic’s take and my take on the proposed acquisition in 2019). On Friday, January 8, 2021, Acacia announced it was terminating the agreement, claiming that Cisco had failed to obtain the necessary approval from the Chinese government. In response, Cisco has filed suit against Acacia in Delaware to block the termination of the agreement, claiming it has met all the conditions required to close the deal. Continue reading “Cisco’s Acquisition of Acacia in Jeopardy”