[ad_1]
Acacia Communications Inc. is abandoning a plan to sell to Cisco Systems Inc. for around $ 2.6 billion, although the network equipment giant aims to push its way through the deal.
Cisco agreed to buy Acacia, a maker of optical interconnect technologies such as modules and semiconductors, in July 2019 for $ 70 per share in cash. The San Jose, Calif., Based company said Acacia’s technology would allow users of its hardware, such as data center operators and telecommunications service providers, to generate more data over Internet networks. High Speed.
On Friday, Acacia said the deal had not received approval from the Chinese government for the combination within the prescribed time frame, a claim disputes Cisco. The Maynard, Massachusetts-based company said it had the right to opt out of the transaction and would not be eligible for a $ 120 million termination payment from Cisco.
Cisco, meanwhile, said the purchase had received approval in China, noting that its submission to regulators was “sufficient to address relevant competition concerns.” The company said it is seeking confirmation from Delaware Chancery Court that it meets all of the conditions for the combination and that a court orders Acacia to complete the transaction.
Acacia shares rose more than 12% in Friday trading, while Cisco shares rose slightly. Acacia drew 15% of its revenue for the first nine months of 2020 from Cisco, the company said in securities filings.
Source link
