Cisco agrees big increase in Acacia bid to seal takeover

Nieuws Breedband Wereld 14 JAN 2021
Cisco agrees big increase in Acacia bid to seal takeover

Cisco has agreed to a big increase in the price it will pay to acquire Acacia Communications, after the latter attempted to withdraw from the deal first agreed in July 2019. Compared to an original offer of USD 70 per share, or USD 2.6 billion in total, Cisco has raised its price to USD 115 per Acacia share, or a total of USD 4.5 billion. Thanks to the new offer, Acacia is dropping its legal action with Cisco and the companies expect to complete the deal by the end of March. 

Upon completion of the acquisition, Acacia's CEO Raj Shanmugaraj and employees will join Cisco's Optics business. Cisco said it would continue to serve Acacia's existing and new customers with its coherent optics, digital signal processing / photonic integrated circuit modules and transceivers for use in networking products and data centres.

The takeover was at threat of being abandoned after Cisco was unable to secure Chinese regulatory approval by an extended deadline. In the meantime, Acacia's share price increased beyond the original bid price. The new offer is a significant premium of over 30 percent on the most recent Acacia share price. 

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Acacia,  Cisco

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Components, Network equipment, Wholesale, M&A buyouts & divestments

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