Acacia agrees to Cisco's increased offer of $4.5bn
- 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.
Optical component maker Acacia Communications Inc on Thursday agreed to Cisco Systems Inc'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.
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