Acacia agrees to Cisco's increased offer of $4.5 billion

FILE PHOTO: A visitor uses a mobile phone in front of the Cisco booth at the Mobile World Congress in Barcelona, Spain, February 26, 2019. REUTERS/Rafael Marchante/File Photo

(Reuters) – Optical component maker Acacia Communications Inc on Thursday agreed to Cisco Systems Inc’s increased offer of $4.5 billion, days after the network gear maker took the legal route against Acacia for terminating a previous deal.

The revised deal for $115 per share in cash represents a premium of about 33% to Acacia’s last closing price on Wednesday.

Acacia had earlier agreed to a $2.84 billion offer from Cisco, but it terminated the agreement, citing failure to obtain China’s approval within the originally agreed time frame. This resulted in Cisco seeking a court order asking Acacia to close the deal for the agreed amount.

Shares of Acacia jumped 31.5%, while Cisco slipped 0.5%.

The companies expect to complete the deal by the end of the first quarter of 2021.

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