Cisco will spend $2.6 billion on Acacia absorption

Cisco Systems, one of the world's largest network equipment developers, will buy optical communications technology provider Acacia Communications for $2.6 billion. Under the terms of the deal, Cisco will pay $ 70 for each share of Acacia.
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The transaction will be closed in the second half of the fiscal year 2020 upon receipt of the necessary regulatory approvals. After completing the transaction, Acacia employees will join the Cisco Networking & Security Business Group.
Acacia designs and manufactures high-speed optical technology. These developments enable companies, service providers and data center operators to meet the rapidly growing consumer demand for data transfer. Acacia customers include Cisco itself.
An analyst from Cowen is confident that the shares of the supplier of network equipment will grow not only due to its high competitiveness in the software market. The expert also noted the strategic importance of the company's network business.
Cisco shares will show the dynamics of this year better than the market and experts recommend buying it. Quotes of Cisco can grow by 15% from the current level, up to $65 per share.

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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