Acacia Communications Inc.
ACIA,
said Friday morning that it has opted to terminate its merger agreement with Cisco Systems Inc.
CSCO,
The merger, announced last July, “was conditioned on the satisfaction or waiver of customary closing conditions, including obtaining necessary regulatory approvals within the timeframe contemplated by the merger agreement,” Acacia said in a release. Acacia said that China’s State Administration for Market Regulation did not offer approval within the timeframe laid out in the merger agreement, meaning that the company “did not have an obligation to close the merger before the arrival of the January 8, 2021 extended end date.” Acacia said in its release that Cisco notified the company that it “may dispute Acacia’s right to have terminated the merger agreement,” while Acacia “intends to defend any such claims.” Cisco shares are off 1.4% in premarket trading Friday. Cisco shares have gained 14% over the past three months as the Dow Jones Industrial Average
DJIA,
has added about 10%.