Networking technology supplier Cisco confirmed yesterday that it is set to acquire US-based fabless semiconductor maker Lutxera in a $660m deal, giving electronics producer Tokyo Electron an exit.
Luxtera manufactures optical transceivers made with silicon photonics for use in data centres and service providers, enhancing performance and reducing cost.
Cisco will integrate the company’s technology across its intent-based networking product range, and it is expected to improve the corporate’s optical transceiver portfolio. Luxtera’s employees will report to David Goeckeler, general manager of Cisco’s networking and security business.
Goeckeler said: “With Cisco’s 2018 Visual Networking Index projecting that global internet traffic will increase threefold over the next five years, our customers are facing an exponential demand for internet bandwidth.
“Optics is a fundamental technology to enable this future. Coupled with our silicon and optics innovation, Luxtera will allow our customers to build the biggest, fastest and most efficient networks in the world.”
Luxtera had disclosed $223m in funding since being founded in 2001 according to press releases and securities filings, including $21.7m in a 2012 series C round that included Tokyo Electron’s TEL Venture Capital unit.
Lux Capital, August Capital, New Enterprise Associates and Sevin Rosen Funds also participated in the 2012 round, which was followed by $37.4m from unnamed investors two years later. California Institute of Technology is also an investor in the company.
