Cisco has revealed that it has plans of acquiring Lightwire, so as to enhance the networks it delivers, based on optical connectivity. The final amount of the deal is said to be lingering somewhere about $271 million in cash and other incentives if it is able to acquire all the shares of Lightwire. Although the deal is still in progress, it is expected that Cisco will be able to successfully seal the deal by the third fiscal quarter of 2012.
Part of the offer being made by Cisco is that shall the deal complete successfully, all employees from Lightwire will be moved to Cisco’s Transceiver Modules Group Business Unit and Supply Chain Operations Group. Lighwire is quite small in size, compared to Cisco itself and may well prove to be a very valuable addition to the tablet. As it is, the main strength of Lightwire is that it excels in CMOS-based technology for switches and routers. This technology ensures a higher-density optical connectivity for the networks at a much lower cost.
According to senior vice president of Cisco’s Service Provider Networking Group, “The acquisition of Lightwire will support our data center and service provider customers as they manage the continuing deluge of network traffic alongside tight capital and operating budgets. With the combined know-how from Cisco in silicon design and Lightwire in CMOS photonics, we will transform Cisco’s optical connectivity business to an integrated technology platform that supports our customers’ burgeoning need for cost-effective high-speed networks.”
Clearly, although the acquisition is costing Cisco a handsome fortune, Lightwire may prove to be a very valuable asset for it in the long-run.
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