29 February 2012

Cisco has recently announced that the company plans to acquire Lightwire, headquartered in Allentown, Penn.
Lightwire Inc. develops advanced optical interconnect technology specifically for high-speed networking applications.
This acquisition will enable Cisco to provide cost-effective and high-speed networks with the next generation of optical connectivity, and will allow data center and service provider customers to meet increasing demands of voice, video, mobility, data and cloud services.
As Cisco officials stated, the acquisition of Lightwire can support Cisco’s “data center and service provider customers as they manage the continuing deluge of network traffic alongside tight capital and operating budgets.” The combination of know-how from Cisco in silicon design and Lightwire in CMOS photonics, Cisco's optical connectivity business can be transformed into an integrated technology platform supporting customers' growing requirement for cost-effective high-speed networks.
Upon the completion of the acquisition, Lightwire employees will be integrated into Cisco's Transceiver Modules Group Business Unit and Supply Chain Operations Group.
Under the terms of the acquisition, Cisco will pay around “$271 million in cash and retention-based incentives in exchange for all shares of Lightwire.”

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