Cisco, a leading global provider of computing, networking and cybersecurity options, has announced that it has obtained ultimate regulatory approval for a $ 4.5 billion settlement to buy Acacia. The merger would have been authorized Tuesday by the State Market Regulatory Administration (SAMR) of the Chinese authorities. SAMR’s consent was the final hurdle for Cisco to complete the transaction.
Cisco’s plans to build up Acacia Communications were first introduced in July 2019. The deal was on a fully diluted basis to buy the company for $ 70 per share in cash for a total of $ 2.6 billion. Cisco then obtained the green light from the American, German and Austrian authorities.
Cisco has obtained approval under certain circumstances. In response to SAMR, the deal could move forward as long as Cisco and Acacia continue to fulfill current contracts in China, in addition to supplying Chinese-speaking companies in accordance with ideas of fairness, reasonableness and non-discrimination.
Last week, Cisco introduced an increase in its preliminary offer to Acacia from $ 70 per share to $ 115 per share in cash, or about $ 4.5 billion on a fully diluted basis. Each company is counting on the brand new transaction to be completed in the first quarter of those 12 months, subject to the same old closing sentences and approval by Acacia shareholders. When the deal is done, Raj Shanmugaraj, CEO of Acacia, and his employees will be part of Cisco’s optics business.
In a letter to Acacia prospects, signed by the managers of each company, he was mentionned: “We believe that Cisco’s acquisition of Acacia will further enhance Cisco’s silicon and optics portfolios, and help accelerate the trend toward cohesive technology and pluggable solutions while welcoming a larger customer footprint into the industry. the whole world. The Acacia team will continue to operate our business in accordance with our practice prior to the announcement of the Cisco acquisition, in order to continue to meet your business needs through to closing. Acacia and Cisco look forward to the combined benefits that we believe we can provide to all of our customers once the acquisition is complete. “