Cisco Systems’ acquisition of Acacia Communications is back on as Cisco has now agreed to pay US$115 per share for Acacia, well above its original purchase price of US$70 per share.
Acacia’s stock is soaring over 31 percent as of Thursday morning, trading at US$113.60 per share, an all-time high for the company.
CNBC was the first to report the new deal Thursday, citing people familiar with the matter.
Cisco is currently suing Acacia to enforce its initial US$2.6 billion deal terms but is expected to drop the lawsuit Thursday.
Earlier this month, Acacia—which provides optical interconnect products—elected to end the year-and-a-half-old Cisco merger agreement after Acacia said it failed to get approval from the Chinese government’s State Administration for Market Regulation before the termination deadline, which was Jan. 8, 2021.
Cisco’s stock is flat as of Thursday morning, trading at US$45.28 per share.
In July 2019, Cisco first unveiled plans to buy Acacia for US$70 per share in cash in a US$2.6 billion deal on a fully diluted basis, the two companies said at the time.
Prior to the merger agreement, Acacia and Cisco already had a relationship. Acacia has been a Cisco supplier of its high-speed, optical interconnect technologies that help hyperscale cloud and service providers, as well as data center operators—two large customer segments for Cisco—meet consumer demand for data.
Acacia has offices in California, Massachusetts, New Jersey, Canada, Ireland, England, India and China.