Shares of Acacia Communications Inc.
rocket 40% against a more than 2 year high in premarket trading Tuesday, after the optical network product company announced a deal to be purchased by Cisco Systems Inc.
in a deal valued at $ 2.6 billion. Cisco's share glowed 0.9% ahead of the open. Under the agreement, Cisco will pay $ 70 cash for each Acacia share outstanding, a 46% premium at Monday's closing price of $ 48.06. The deal is expected to close in the second half of Cisco's fiscal 2020. "With the explosion of bandwidth in the multi-cloud era, optical interconnection technology is becoming increasingly strategic," said David Goeckeler, Cisco's network and security executive general manager. "The acquisition of Acacia will allow us to build on the strength of our switch, routing and optical network portfolio to meet our customers' most demanding requirements." Acacia's share has fallen 1
has advanced 2.5%.