Cisco is going to buy chipmaker Luxtera by $660 m
One of the biggest network hardware supplier Cisco announced an intention to acquire chipmaker Luxtera by $660 m. It may be added that Cisco cooperates with huge organizations and telecommunications companies. The deal will be completed in 2019 if regulatory authorities approve it.
The main reason for the investment is the ability to produce a new next-generation network.
So, what is the Luxtera? “Luxtera, Inc, a semiconductor company based in Carlsbad, Calif. that uses silicon photonics to build integrated optics capabilities for webscale and enterprise data centers, service provider market segments, and other customers. Cisco plans to incorporate Luxtera's technology across its intent-based networking portfolio, spanning enterprise, data center and service provider markets,” write the company on the official site.
Cisco is planning to integrate Luxtera`s technologies in its network technologies portfolio which covers enterprises, data centers, and service providers.
Also, the company is going to work for evolving segment of cloud technologies, mobile and IoT apps. It should be noted that mentioned above needs powerful hardware due to a heavy workload. According to the Cisco research, internet traffic will have increased three times during the next five years.
“Integration of Luxtera and Cisco's optical transceiver portfolio will broaden Cisco's offering of 100GbE and 400GbE optics. As system port capacity increases from 100GbE to 400GbE and beyond, optics plays an increasingly important role in addressing network infrastructure constraints, particularly density and power requirements,” Cisco commented the future of the internet consuming.
Cisco`s strategy and the coming deal allow considering the companies` stocks as one of the interesting options for capital investments. Find more information on GMOTrading site.
The information above cannot be considered as an investment advice and past results do not indicate future performance.
**Investors should have experience and understand the risks of losing all the initial investment
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