Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Acacia agrees to Cisco's increased offer of $4.5 billion

Published 14/01/2021, 14:57
© Reuters. FILE PHOTO: The Cisco Systems logo is seen as part of a display at the Microsoft Ignite technology conference in Chicago

(Reuters) - Optical component maker Acacia Communications Inc (NASDAQ:ACIA) on Thursday agreed to Cisco Systems Inc (NASDAQ:CSCO)'s increased offer of $4.5 billion, days after the network gear maker took the legal route against Acacia for terminating a previous deal.

The revised deal for $115 per share in cash represents a premium of about 33% to Acacia's last closing price on Wednesday.

Acacia had earlier agreed to a $2.84 billion offer from Cisco, but it terminated the agreement, citing failure to obtain China's approval within the originally agreed time frame. This resulted in Cisco seeking a court order asking Acacia to close the deal for the agreed amount.

Shares of Acacia jumped 31.5%, while Cisco slipped 0.5%.

The companies expect to complete the deal by the end of the first quarter of 2021.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.