2. Cisco Closes Acacia Communications Deal for $4.5B
Cisco has been making strides in the telecom arena in the last two years after introducing its “Internet of the Future” strategy. After an extensive back and forth -- for nearly two years -- the tech giant finally closed its acquisition of Acacia Communications, a supplier of its high-speed, optical interconnect technologies in the Spring.
Cisco first announced plans to buy Acacia Communications for $70 per share in cash in a $2.6 billion deal on a fully diluted basis in July 2019. Acacia in January opted to end the agreement, saying Cisco failed to get approval from the Chinese government’s State Administration for Market Regulation before the termination deadline. Cisco then denied Acacia’s claim filed a lawsuit to enforce the deal, which had a price tag of $2.6 billion at the time. Later in January, the two companies agreed on new terms that would have Cisco agreeing to pay $115 per share for Acacia, well above its original purchase price of $70 per share. Cisco completed and closed the $4.5 billion deal in March 2021.