Acacia Communications Inc. (NASDAQ: ACIA) terminated its merger deal valued at £2.09 billion with Cisco Systems Inc. (NASDAQ: CSCO) on Friday. The optical component maker said it failed to receive regulatory approval from China within the allotted time.
Cisco approached the court on the same day, requesting a restraining order to stop Acacia from abandoning the deal. Chancellor J. Travis Laster approved Cisco’s appeal after a hearing on Saturday, ordering Acacia to abide by the agreement until the court further evaluates Cisco’s claims.
Acacia closed about 1.5% up on Friday. At £58.68 per share, the stock has recovered significantly from the low of £46 per share in March. Acacia performed slightly upbeat in 2020 with an annual gain of close to 7%.