M&A · Tech · Semiconductors & Related Devices
Cisco Systems, Inc. to acquire Acacia Communications, Inc.
Announced Jan 14, 2021 · Closed Mar 1, 2021
Deal value$4.50BEV $4.64B
Premium33.0%To unaffected price
EV / Adj. EBITDA43.9x8.5x EV / Revenue
ConsiderationAll cash$115.00 per share
Transaction
- Acquirer
- Cisco Systems, Inc. (CSCO)
- Target
- Acacia Communications, Inc. (ACIA)
- Buyer type
- Strategic
- Offer price per share
- $115.00
- Enterprise value
- $4.64B
- Status
- Closed Mar 1, 2021
Deal protections
- Break fee (target pays)
- $197M · 4.4%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Not disclosed
- To the target
- Goldman Sachs
Sector context · Tech
- Comparable deals
- 14 in the prior 24 months
- Premium
- 33.0% vs. 30.8% sector median
- EV / Adj. EBITDA
- 43.9x vs. 18.6x sector median
- Break fee
- 4.4% vs. 3.0% sector median
Timeline
- AnnouncedJan 14, 2021
- Proxy filedJan 27, 2021
- Definitive proxyFeb 8, 2021
- Shareholder voteMar 1, 2021
- ClosedMar 1, 2021
Valuation · fairness opinions
Future share price$75.14$118.76
Trading comparables$77.59$122.58
Discounted cash flow$88.54$123.09
Precedent transactions$73.10$160.35
Precedent transactions$55.86$86.55
Offer $115.00
Implied value per Acacia Communications, Inc. share by analysis, from Goldman Sachs · DCF discount rate 8%–9%.