Strengthens Cisco’s routing and optical networking portfolio
SAN JOSE, Calif. – On July 9, 2019, Cisco announced its intent to acquire Acacia Communications, Inc., a Massachusetts-based publicly traded company and existing Cisco supplier that designs and manufactures high-speed, optical interconnect technologies that allow webscale companies, service providers, and data center operators to meet the fast-growing consumer demands for data.
Exponential growth in Internet users, data and video content delivery, social networking, and demanding business applications have pushed the speed and capacity limits of traditional server, router and switch infrastructure. As system port capacity increases from 100GbE to 400GbE and beyond, optics, including optical pluggables, address network infrastructure constraints, particularly density and power requirements in longer distance, fiber-scarce environments.
Acacia’s optical technology portfolio will enrich Cisco’s optical offerings for existing customers as well as those customers who will transition from chassis-based systems to pluggable technology in order to simplify operations and reduce network complexities.
The acquisition is expected to close during the second half of Cisco Fiscal Year 2020, subject to customary closing conditions and required regulatory approvals. Upon close, Cisco and Acacia will continue to serve and support new and existing Acacia customers.
Innovation across hardware and software is fueling Cisco’s initiative to make networks smarter, simpler and more secure.
Q: Why did Cisco choose Acacia?
A:Cisco uses Acacia technology in its optical systems and routing portfolio today, and as more of the coherent market is fulfilled with pluggable technology (e.g. 400G ZR), this fits well with our overall optics strategy. Cisco has a rich portfolio of optics (pluggables) supporting our routing and switching portfolio, and we expect that customers will adopt pluggable Dense Wavelength Division Multiplexing (DWDM) technology over time as this technology evolves in both performance and density.
Q: Can you explain Acacia’s offering?
A: 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. By implementing optical interconnect technology in a silicon-based platform, a process Acacia refers to as the "siliconization of optical interconnect," Acacia is able to offer products at higher speeds and density with lower power consumption, that meet the needs of cloud and service providers and can be easily integrated in a cost-effective manner with existing network equipment.
Q: What is the strategic importance of the Acacia acquisition to Cisco’s strategy?
A: Optics is a foundational technology for Cisco, along with Silicon and Software. We address the full range of optical transmission customer needs, from very short reach (500m, 2km, 10km) to WAN, Metro, Long Haul. Acacia is used in our optical systems today to address our customers’ needs in the WAN, Metro and Long Haul market segments. As this technology migrates from modules that are incorporated onto line cards in optical systems, to pluggables, Cisco will be in a position to serve our customers as they make this architectural shift.
If you are existing customer of Acacia with questions about Acacia products or services, please contact Acacia. If you are a Cisco customer with questions about Cisco products or services, please continue to contact your existing sales representative.
Cisco Partners – Between now and acquisition close, which we anticipate will happen the second half of Cisco’s FY2020, Cisco and Acacia will continue to operate as separate companies with each providing their current offers. Existing Cisco Partners should continue to contact their Cisco Partner Account Manager (PAM) for additional information regarding this acquisition.
Acacia customers should continue to use the existing process for support on their solution. After Cisco completes its acquisition of Acacia, Cisco will contact you if the process for obtaining support for your solution will change.
Additional Information and Where to Find It
In connection with the proposed acquisition and required stockholder approval, Acacia will file with the Securities and Exchange Commission a preliminary proxy statement and a definitive proxy statement. The proxy statement will be mailed to the stockholders of Acacia. Acacia’s stockholders are urged to read the proxy statement (including all amendments and supplements) and other relevant materials when they become available because they will contain important information. Investors may obtain free copies of these documents (when they are available) and other documents filed with the SEC at its website at http://www.sec.gov. In addition, investors may obtain free copies of the documents filed with the SEC by Acacia by going to Acacia’s Investor Relations page on its corporate website at http://ir.acacia-inc.com or by contacting Acacia Investor Relations at (212) 871-3927.
Acacia and its executive officers and directors may be deemed to be participants in the solicitation of proxies from Acacia’s stockholders with respect to the acquisition. Information about Acacia’s directors and executive officers, including their ownership of Acacia securities, is set forth in the proxy statement for Acacia’s 2019 Annual Meeting of Stockholders, which was filed with the SEC on April 3, 2019, Form 8-K filed with the SEC on June 3, 2019, and Acacia’s other filings with the SEC. Investors may obtain more detailed information regarding the direct and indirect interests of Acacia and its respective executive officers and directors in the acquisition by reading the preliminary and definitive proxy statements regarding the transaction, which will be filed with the SEC.
In addition, Cisco and its executive officers and directors may be deemed to have participated in the solicitation of proxies from Acacia’s stockholders in favor of the approval of the transaction. Information concerning Cisco’s directors and executive officers is set forth in Cisco’s proxy statement for its 2018 Annual Meeting of Shareholders, which was filed with the SEC on October 24, 2018, annual report on Form 10-K filed with the SEC on September 6, 2018, Form 8-K filed with the SEC on May 22, 2019, and Cisco’s other filings with the SEC. These documents are available free of charge at the SEC’s website at www.sec.gov or by going to Cisco’s Investor Relations website at https://investor.cisco.com.
Accelerating Cisco’s Intent-Based Networking and Product Portfolio
Acacia’s technology will enrich Cisco’s optical systems portfolio. It will also allow the growing number of customers transitioning from chassis-based systems to pluggable technology to simplify operations and reduce network complexities.