Cisco is preparing to buy privately held CoreOptics, which specializes in digital signal processing (DSP) technology for high-speed optical networking applications.

Cisco expects to pay about $99 million in cash and retention-based incentives in exchange for all shares of CoreOptics.

Cisco expects to use CoreOptics’ DSP designs in 100 Gbps transmission systems.

"With this acquisition, Cisco reinforces its commitment to continue to invest in its core networking business and to deliver IP next-generation networks at 100 Gbps and beyond," said Surya Panditi, vice president and general manager of Cisco's Service Provider Access and Transport Technology Group.

The next phase of innovation in optical networking will be driven by sophisticated modulation formats and advanced DSP technologies. These new capabilities enable the efficient transmission of large amounts of data over existing fiber-optic installations, Cisco said.

More Broadband Direct 5/21/10:

•  FCC to revise pole attachment rules
•  FCC issues mixed report on industry competition
•  RCN's shareholders approve merger with Abry
•  Cisco buys European DSP design firm
•  Rogers adds e-mail features to texting
•  FTC clears Google purchase of mobile ad service
•  Broadband Briefs for 05/21/10