Cisco completes $660 million acquisition of Luxtera, a semiconductor maker

Cisco has completed the acquisition of privately-held Luxtera, Inc, a semiconductor company 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.

Cisco paid $660 million in cash and assumed equity awards for the acquisition of Luxtera.

In mid December last year, Cisco announced its intention to acquire Luxtera, Inc, which is based in Carlsbad, California.

“With Cisco’s 2018 Visual Networking Index projecting that global Internet traffic will increase threefold over the next five years, our customers are facing an exponential demand for Internet bandwidth,” said David Goeckeler, executive VP and GM, Networking and Security Business at Cisco said. “Optics is a fundamental technology to enable this future. Coupled with our silicon and optics innovation, Luxtera will allow our customers to build the biggest, fastest and most efficient networks in the world.”

The acquisition is expected to among other things: future-proof networks for emerging applications as the emerging class of distributed cloud, mobility, and IoT applications is creating an unprecedented strain on existing communications infrastructure. The combination of Cisco’s and Luxtera’s capabilities in 100GbE/400GbE optics, silicon, and process technology will enable customers to build future-proof networks optimized for performance, reliability, and cost; and secondly, expand Cisco’s 100GbE and 400GbE portfolio as the 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.

With the acquisition now completed, Luxtera employees will join Cisco’s Optics business under David Goeckeler, executive VP and GM in charge of the Networking and Security Business.

Luxtera, founded in 2001, has various partners including Freescale Semiconductor (fabricates Luxtera’s chips). It was founded by a number of members of Prof. Axel Scherer’s lab group, including Cary Lawrence Gunn, Michael Hochberg, Tom Baehr-Jones, and also Axel Scherer. Other co-founders include Prof. Eli Yablonovitch and John Oxaal.

In 2010, Luxtera was selected as one of MIT Technology Review’s 50 Most Innovative Companies.

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