Cisco seeks court order after Acacia terminates $2.84 billion merger agreement

(Reuters) — Cisco Methods on Friday sought a court docket order asking Acacia Communications to near the $2.84 billion deal, simply over an hour after the optical element maker terminated the merger settlement.

The swift reaction got here after Acacia stated the deal failed to procure regulatory approval from China inside the in the beginning agreed time period.

Cisco stated it won the approval on Thursday and sought affirmation from the Delaware Court docket of Chancery that it has met all prerequisites for remaining the deal.

The community tools maker had agreed to shop for Acacia in money in 2019, aiming to garner a larger bite of 5G spending via telecom firms.

The merger, to start with anticipated to near in the second one part of Cisco’s fiscal 2020, used to be cleared via america, Germany and Austria, however have been underneath regulatory overview via China, the one last remaining situation of the deal.

Stocks of Cisco rose just about 1% early buying and selling, whilst Acacia jumped about nine%.

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