Cisco Systems announced plans to acquire Acacia Networks, a 10-year-old developer of hardware and software for high-speed fiber-optic networks. The deal shows how Cisco CEO Chuck Robbins, after a string of deals aimed at boosting the company’s software sales, is now focusing on upgrading its networking product portfolio.
Acacia was one of a handful of tech companies to go public in 2016. Its shares jumped 35% to close at $30 in their first day of trading, and then reached nearly $120 a share in September of that year. But the stock has been trending downward since then. Cisco is paying $70 per share to acquire Acacia, or 46% higher than Acacia’s share price at the close of trading on Monday.