Shares of Acacia Communications soared 9.9% on Friday after the optical interconnect products maker terminated its merger deal with Cisco Systems.
Notably, the deal was announced in July 2019, wherein Cisco agreed to buy Acacia for $2.6 billion in cash.
Acacia (ACIA) cited lack of approval from the Chinese regulatory body as the reason for scrapping the deal. Acacia said that it didn’t received approval for the transaction from the Chinese government’s State Administration for Market Regulation before Jan. 8, 2021, a deadline fixed under the merger agreement.
However, later in the day, Bloomberg reported that Cisco (CSCO) has won a temporary court order that prevents Acacia from terminating the planned merger agreement between the two companies.Cisc