Cisco Provides Update on Acacia Acquisition

Rhea-AI Summary

Cisco (NASDAQ: CSCO) is seeking confirmation from the Delaware Court of Chancery regarding the closing conditions for its acquisition of Acacia Communications (NASDAQ: ACIA). This includes confirmation that all necessary conditions, including approval from China's State Administration for Market Regulation (SAMR), have been met. As of January 7, 2021, Cisco received notification from SAMR that its submission addresses relevant competition concerns. Cisco also seeks a court order to require Acacia to proceed with the transaction.

Positive

• Cisco has received approval from China's SAMR, indicating progress in the acquisition process.
• The court's ruling could expedite the completion of the acquisition, allowing for potential synergies between Cisco and Acacia.

Negative

• The need for court confirmation and orders suggests potential delays in finalizing the acquisition.
• Uncertainties remain regarding the integration of Acacia's technology and operations.

SAN JOSE, Calif., Jan. 8, 2021 /PRNewswire/ -- Cisco (NASDAQ: CSCO) today announced that it is seeking confirmation from the Delaware Court of Chancery that it has met all conditions for closing of its acquisition of Acacia Communications (NASDAQ: ACIA), including approval of China's State Administration for Market Regulation (SAMR). Cisco is also seeking a court mandate that the agreement may not be terminated until the court resolves these matters, and an order from the court requiring Acacia to close the transaction. On January 7, 2021, Cisco was notified by SAMR that the agency has determined that Cisco's submission is "sufficient to address the relevant competition concerns."

About Cisco
Cisco (NASDAQ: CSCO) is the worldwide leader in technology that powers the Internet. Cisco inspires new possibilities by reimagining your applications, securing your data, transforming your infrastructure, and empowering your teams for a global and inclusive future. Discover more on Network and follow us on Twitter at @Cisco.

Cisco and the Cisco logo are trademarks or registered trademarks of Cisco and/or its affiliates in the U.S. and other countries. A listing of Cisco's trademarks can be found at www.cisco.com/go/trademarks.

Forward Looking Statements
This press release may be deemed to contain forward-looking statements, which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.  Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates" and similar expressions) should be considered to be forward-looking statements, although not all forward-looking statements contain these identifying words.  Readers should not place undue reliance on these forward-looking statements.  Forward-looking statements may include statements regarding the enhancement to Cisco's strategy, support of Acacia's existing customers and new customers, and Acacia personnel.  Statements regarding future events are based on the parties' current expectations and are necessarily subject to associated risks related to, among other things, general economic conditions, including as related to the ongoing COVID-19 pandemic, the retention of employees of Acacia and the ability of Cisco to successfully integrate Acacia's market opportunities, technology, personnel and operations and to achieve expected benefits. Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements. For information regarding other related risks, see the "Risk Factors" section of Cisco's most recent quarterly report on Form 10-Q filed with the SEC on November 17, 2020 and on its most recent annual report on Form 10-K filed with the SEC on September 3, 2020, as well as the "Risk Factors" section of Acacia's most recent quarterly report on Form 10-Q filed with the SEC on November 9, 2020 and on its most recent annual report on Form 10-K filed with the SEC on February 18, 2020. The parties undertake no obligation to revise or update any forward-looking statements for any reason.

View original content to download multimedia:http://www.prnewswire.com/news-releases/cisco-provides-update-on-acacia-acquisition-301203403.html

SOURCE Cisco

FAQ

What is the current status of Cisco's acquisition of Acacia Communications?

Cisco is seeking court confirmation that it has met all conditions for closing the acquisition and has received approval from China's SAMR.

What does Cisco need from the Delaware Court of Chancery?

Cisco is requesting confirmation that all closing conditions have been met and that the agreement cannot be terminated while the court resolves the matters.

What did SAMR communicate to Cisco regarding the acquisition?

SAMR notified Cisco that its submission sufficiently addresses relevant competition concerns, indicating a step forward in the approval process.

What are the implications of the court's ruling for Cisco and Acacia?

A favorable ruling could expedite the acquisition's finalization, enabling Cisco to integrate Acacia's technology and customer base.