It said Luxtera's advanced chips will help Cisco meet business client demand for faster and high-performing network service.
"Our customers are looking to address the unrelenting demand for more bandwidth driven by an emerging class of distributed cloud, mobility, and IoT applications. Simply put, the exponentially growing demands on the network require a new era of networking," Vice President for Corporate Business Development, Rob Salvagno, said in a blog post.
"That's why today we announced our intent to acquire Luxtera, Inc., a privately-held semiconductor company that uses silicon photonics technology to build integrated optics capabilities for webscale and enterprise data centers, service provider market segments, and other customers. Luxtera's technology, design and manufacturing innovation significantly improves performance and scale while lowering costs."
The companies expect to close the acquisition in the third quarter of Cisco's fiscal year 2019. Shares of Cisco were trading fractionally higher in early trading Tuesday.