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Cisco snaps up networking chipmaker Luxtera for $660M

December 18, 2018 / MARIA DEUTSCHER

Cisco Systems Inc. today said that it will shell out $660 million to buy Luxtera Inc., a Carlsbad, California-based maker of specialized chips for high-speed optical networks. The deal’s announcement comes a week after word leaked that the companies were holding acquisition talks. Cisco reportedly beat out offers from Intel Corp. and Broadcom Inc. earlier in the negotiations. It would certainly stand to reason that multiple buyers had made bids, given how Luxtera holds a prominent position in an increasingly important segment of the networking market. Luxtera is one of the leading makers of so-called silicon photonics chips (pictured). In data centers, they’re used to convert digital information from its default electronic form into light so that it may be transmitted over fiber optic cables. Because photons travel faster than electronics, packets arrive at their destination quicker than what traditional copper wiring allows. The use of fiber optic gear is increasing as com...