Friday, January 8, 2021

Cisco fights to keep alive its planned $2.6B purchase of optical-tech vendor Acacia

Cisco’s planned acquisition of Acacia Communications took a litigious turn this week as the networking giant has gone to court to keep the optical technologies vendor from terminating the purchase.

Cisco filed for a temporary restraining order in Delaware Chancery Court Jan. 8 to prevent Acacia from terminating its acquisition agreement with the company. The move followed an Acacia statement issued earlier on Jan. 8 that stated the company “has elected to terminate its merger agreement with Cisco Systems, Inc., effective immediately.”

Acacia said the proposed merger was conditioned on the satisfaction or waiver of customary closing conditions, including obtaining necessary regulatory approvals within the timeframe contemplated by the merger agreement. One of those was the approval of China’s State Administration for Market Regulation (SAMR), and Acacia said that hasn't been obtained within the originally agreed time frame.

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Thanks to Michael Cooney (see source)

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