Cisco announced the intent to acquire privately-held Luxtera, a semiconductor company based in California for $660 million in cash.
Luxtera uses silicon photonics to build integrated optics capabilities for webscale and enterprise data centers, service provider market segments, and other customers. Its technology, design, and manufacturing innovation significantly improves chip scale and performance, while lowering costs. Cisco plans to incorporate Luxtera's technology across its intent-based networking portfolio, spanning enterprise, data center and service provider markets.
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.
The acquisition will enhance Cisco's and Luxtera's capabilities in 100GbE/400GbE optics, silicon, and process technology will enable customers to build future-proof networks optimized for performance, reliability, and cost.
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.