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Acacia Communications (CFIA) – Get the report shares rose on Thursday after the optical component maker said it had agreed to a new $ 4.5 billion merger with Cisco Systems (CSCO) – Get the report after a disagreement over China’s regulatory approval.
Cisco will pay $ 115 per share for Acacia, the company said, ending months of wrangling over the 2019 deal to give Cisco a clearer path to spending on 5G network deployment. Regulators in the US, Germany and Austria had cleared the proposed buyout, but a delay in getting approval from China before the Jan.8 deadline prompted Acacia to end the original deal. .
“We maintain our strong belief in the strategic advantages of joining the Cisco family and believe this will allow us to better support our existing customers, while reaching a broader footprint of new customers globally,” said Raj Shanmugaraj, CEO of Acacia. “We are delighted to have entered into this agreement with Cisco and are delighted to move forward with the combination that we believe will transform the optical industry, while providing great opportunities for Acacia employees to continue their career. innovation.
Acacia shares were marked 32.6% higher in early Thursday afternoon after the merger deal to change hands at $ 114.64 each. Cisco shares, meanwhile, rose 0.33% to $ 45.52 each.
“I am delighted that Cisco and Acacia have decided to come together as part of this mutual agreement,” said CEO Chuck Robbins. “We look forward to welcoming Raj and the Acacia team to Cisco to provide our customers with world-class consistent optical solutions to power the Internet for the future.”
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