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Cisco To Acquire Private-held Semiconductor Company Luxtera - Quick Facts

Networking-equipment maker Cisco Systems Inc. (CSCO) said Tuesday that it intends to acquire privately-held Luxtera, Inc, a semiconductor company based in Carlsbad, California that uses silicon photonics to build integrated optics capabilities for webscale and enterprise data centers, service provider market segments, and other customers.

Cisco said it will pay $660 million in cash and assumed equity awards for the acquisition of Luxtera. The acquisition is expected to close in the third quarter of Cisco's fiscal year 2019.

Cisco noted that Luxtera's technology, design, and manufacturing innovation will significantly improve chip scale and performance, while lowering costs. The company plans to incorporate Luxtera's technology across its intent-based networking portfolio, spanning enterprise, data center and service provider markets.

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 at Cisco.

"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," said Goeckeler.

Cisco noted that the acquisition of Luxtera will future-proof networks for the emerging class of distributed cloud, mobility and IoT applications as well as expand Cisco's 100GbE and 400GbE portfolio.

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