Cisco announced its intent to buy privately-owned Lightwire, which develops advanced technology of high-speed optical network switching. This purchase will allow Cisco to build a cost-effective new generation high-speed optical switching network. As a result, Cisco customers (carriers and data centers) will be able to meet the growing demand for video, voice and data transferring services, and the demand for mobile and cloud services.
As expected, the silicon (CMOS) optical technology will play an important role in the development of high-speed networks. Lightwire experience in optical CMOS technology and package design, made a technological breakthrough in optical switching: it integrated multiple high-speed active and passive functions on a small silicon chip. Compactness, low power consumption and Lightwire CMOS scalability allows switches, routers and optical transport systems to increase the density of optical connections at lower cost. As a result, carriers can reduce operating costs and offer customers new profitable services.
The buying of Lightwire supports of our customers who are trying to cope with the growing avalanche of network traffic in an increasingly tough operating budgets - Cisco senior vice president, the manager of technologies development service Surya Pandit says. – The consolidation of Cisco knowledge and experience in silicon technology with the Lightwire optical CMOS-technology knowledge and experience will transform Cisco optical business, and move it into an integrated technology platform in accordance with the urgent needs of our customers who need cost-effective high-speed networks.
The buying of Lightwire advanced technology is a perfect illustration of Cisco innovative model, that includs the development of technologies on their own, buying foreign companies and the partner solutions use. This bargain underscores our commitment to maintain our leadership in backbone networks, which constitute one of the five Cisco top priorities, - Cisco strategy chief director Ned Hooper said.
Upon completion of the transaction Lightwire employees will take part in Cisco state department (Cisco Transceiver Modules Group Business Unit), and Supply Chain Operations Groups. Under the agreement, Cisco will buy all shares of Lightwire, paying about $271 M cash for them. It is expected to complete the deal after all required approvals and procedures in the third quarter 2012 (by May of this year).