Cisco to Get Order Blocking Acacia From Ending Merger Deal

(Bloomberg) -- Cisco Systems Inc. won a temporary court order blocking Acacia Communications Inc. from ending a merger agreement between the two companies.

Cisco said in July 2019 that it planned to buy Acacia, an optical component maker, for about $2.6 billion to capture a bigger chunk of spending on 5G telecommunications networks.

Maynard, Massachusetts-based Acacia said in a statement Friday that it didn’t receive approvals from the Chinese government’s State Administration for Market Regulation within the timeframe of the merger agreement, so it didn’t have an obligation to close the merger before today.

Cisco said in a separate statement that it’s seeking confirmation from a Delaware judge that it has indeed met “all conditions for closing” the deal, including approval from China’s regulator. It won the order on Friday from a Delaware judge.

Read More: Cisco Systems Sues to Stop Acacia From Ending Merger

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