Cisco in talks to acquire optical chip vendor Luxtera

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Cisco in talks to acquire optical chip vendor Luxtera

Cisco Systems is in talks to acquire optical chip maker Luxtera, beating Intel and Broadcom to the punch for a deal that could reach into the hundreds of millions of dollars, according to a Bloomberg report.

Negotiations between networking behemoth Cisco and Luxtera are ongoing and private, and there's still a chance the deal may not go through, Bloomberg reported, citing people familiar with the plans.

Luxtera develops silicon photonics, which integrates fibre optics with silicon electronics. The "fibre to the chip" technology is said to greatly speed data connectivity. The company was founded in 2001. Its president and CEO Greg Young worked for both Broadcom and Intel before joining Luxtera in 2007.

Luxtera, Broadcom, Intel and Cisco did not immediately respond to requests for comment Tuesday.

Cisco under Chairman and CEO Chuck Robbins has made significant efforts to transition to a business model that emphasises software and subscription-based revenue. The acquisition of Luxtera would potentially give the company a hardware performance advantage, however, as customers move toward low-cost gear and away from expensive, proprietary equipment.

This article originally appeared at crn.com

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