Cisco seeks court approval to force Acacia to finish $2.6Bn merger

  • In July 2019, Cisco announced the acquisition of Acacia, which supplied components to the company. Cisco said at the time that the purchase would benefit the firm's existing enterprise network portfolio
  • Under the terms of the deal, Cisco was required to meet a set of closing conditions, a standard procedure in most M&A deals
  • • According to Acacia, however, these conditions have not been met in time. On January 8, Acacia said the company "elected to terminate its merger agreement," effective immediately, and accused Cisco of not obtaining approval from the Chinese government's State Administration for Market Regulation (SAMR)
  • Cisco says it was previously notified by SAMR that information provided by the company was "sufficient to address the relevant competition concerns."
  • In addition, the tech giant asked for an order to be issued that prevents Acacia from terminating the deal "until the court resolves these matters."
  • According to Bloomberg, this temporary court order has been granted and the matter is also set to be expedited
  • Acacia is a component supplier and maker of high-speed optical interconnect products for networking purposes

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