Big Law

Acacia and Cisco Have a New Merger Agreement Worth $4.5B

Acacia Communications  (ACIA) – Get Report shares surged higher Thursday after the optical component maker said it has agreed a new $4.5 billion merger with Cisco Systems  (CSCO) – Get Report after a disagreement linked to regulatory approval from China.

Cisco will pay $115 per share for Acacia, the company said, ending months of wrangling over the 2019 deal aimed at giving Cisco a clearer path into spending linked to 5G network rollouts. Regulators in the U.S., Germany, and Austria had cleared the proposed takeover, but a lag in obtaining approval from China before a January 8 deadline caused Acacia to terminate the original deal.

“We maintain our strong conviction in the strategic benefits of joining the Cisco family and believe it will enable us to better support our existing customers while reaching an expanded footprint of new customers globally,” said Acacia CEO Raj Shanmugaraj. “We are pleased to have reached this agreement with Cisco and are excited to move forward with the combination which we believe will transform the optical industry while providing great opportunities for Acacia employees to continue their innovation.” 

Read the source article at Stock Market

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