Networking hardware and telecom equipment company Cisco is planning to acquire Acacia Communications in a $2.6 billion deal .
As announced by the companies on Tuesday, Cisco will pay $70 per share in cash for Acacia - a networking company and already a supplier for Cisco.
The acquisition is expected to bolster Cisco’s optical systems business. According to the announcement, the deal is expected to close in the second half of Cisco’s fiscal year 2020.
Acacia shares surged more than +38% during premarket trading Tuesday, while Cisco was down -1% .