Cisco Systems Inc. (CSCO) agreed to acquire Lightwire Inc., a developer of high-speed optical transceivers, for $271 million in cash as it looks to meet the growing networking demands for data-center and service providers.
Cisco said privately held Lightwire has integrated multiple high-speed active and passive optical functions onto a small silicon chip, allowing switches, routers and optical transport systems to have higher-density optical connectivity at a lower cost.
"With the combined know-how from Cisco in silicon design and Lightwire in CMOS [complementary metal oxide semiconductor] photonics, we will transform Cisco's optical connectivity business to an integrated technology platform that supports our customers' burgeoning need for cost-effective high-speed networks," said Surya Panditi, senior vice president of Cisco Service Provider Networking Group.
Cisco expects to close the deal in the third quarter.
The networking company reported earlier this month its fiscal second-quarter earnings rose 43% as its renewed focus on networking equipment contributed to an 11% revenue jump.
Shares were trading at $20.26 premarket, up 3 cents. The stock has gained 12% so far this year though Thursday's close.
-By Melodie Warner, Dow Jones Newswires; 212-416-2283; firstname.lastname@example.org