Acacia Pulls Out Of Cisco Deal

Shares of Acacia Communications soared 9.9% on Friday after the optical interconnect merchandise maker terminated its merger cope with Cisco Techniques.

Notably, the deal was introduced in July 2019, whereby Cisco agreed to purchase Acacia for $2.6 billion in money.

Acacia (ACIA) cited lack of approval from the Chinese language regulatory physique as the rationale for scrapping the deal. Acacia stated that it didn’t acquired approval for the transaction from the Chinese language authorities’s State Administration for Market Regulation earlier than Jan. 8, 2021, a deadline mounted underneath the merger settlement.

Nonetheless, later within the day, Bloomberg reported that Cisco (CSCO) has gained a short lived court docket order that stops Acacia from terminating the deliberate merger settlement between the 2 firms.

In a separate assertion, Cisco introduced that it has sought affirmation from the court docket that it has met all circumstances for closing the transaction, together with approval from the Chinese language regulatory physique. (See ACIA stock analysis on TipRanks)

Following Acacia’s merger termination announcement, Craig-Hallum analyst Richard Shannon upgraded the inventory to Purchase from Maintain and raised the value goal to $110 (38.2% upside potential) from $70. Shannon believes that the corporate’s worth is considerably increased than Cisco’s earlier bid of $70 per share.

Whereas Craig-Hallum stays bullish, Needham maintains a Maintain ranking. The common price target of $110 on Acacia implies upside potential of about 38.2% over the following 12 months. Shares have gained 16.4% over the previous 12 months.


Associated Information:
Wyndham Buys Travel + Leisure For $100M; Analyst Lifts PT
LafargeHolcim Inks $3.4B Deal To Buy Firestone Building; Shares Rise 4.6%
Walgreens To Sell Distribution Unit To AmerisourceBergen For $6.5B; Shares Gain

Source link

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

seventeen + 16 =

Back to top button