Cisco Acquires Acacia in $2.6 Billion Deal to Boost Networks

Cisco is acquiring Acacia Communications for $2.6 billion, paying $70 per share, a 46% premium. This move is part of Cisco's strategy to increase its revenue from software and services to 50% by 2020. Acacia's focus on cloud and data centers aligns with Cisco's goals. However, the acquisition requires approval from China, where Acacia generates 29% of its revenue, posing a potential challenge due to strained US-China relations.

What was the percentage increase in Acacia Communications' shares following Cisco's acquisition announcement?

• 50%

• 20%

• 30%

• 40%

How much is Cisco paying per share for Acacia Communications?

• $65

• $75

• $60

• $70

What percentage of Cisco's revenue does it aim to derive from software and services by 2020?

• 30%

• 50%

• 40%

• 60%

Which sector is Acacia's circuit business heavily focused on?

• Retail

• Mobile Networks

• Cloud and Data Centers

• Consumer Electronics

Why does Cisco's acquisition of Acacia require approval from China?

• Acacia has no business in China

• Acacia's major customers are in China

• Cisco is a Chinese company

• The deal is too small to require approval