Shares of optical networking technology company Acacia Communications, Inc. (ACIA) are climbing more than 10% Friday morning on the news of it opting out of merger agreement with Cisco Systems.
"The proposed merger, announced in July 2019, was conditioned on the satisfaction or waiver of customary closing conditions, including obtaining necessary regulatory approvals within the time frame contemplated by the merger agreement. Because approval of the Chinese government's State Administration for Market Regulation was not received within the time frame contemplated by the merger agreement, Acacia did not have an obligation to close the merger before the arrival of the January 8, 2021 extended end date.," Acacia said.
Cisco has informed Acacia that it may dispute Acacia's right to have terminated the merger agreement. Acacia intends to defend any such claims, the company said.
ACIA, currently trading at $80.06, touched a new high of $81 this morning.
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