Achronix cancels $2bn SPAC deal

July 13, 2021 // By Peter Clarke
Achronix cancels $2bn SPAC deal
FPGA company Achronix Semiconductor has called off its deal to go public on Nasdaq via a takeover by ACE Convergence Acquisition Corp., due to a lack of regulatory approval.

FPGA designer Achronix Semiconductor has called off its bid to go public via a merger with a speciil acquisiion company (SPAC). 

The proposed merger, announced in January 2021 and valuing Achronix at $2.1bn, was conditional upon including obtaining necessary regulatory approvals by July 15. Both parties now feel that is not possible and so agreed to call off the deal. It is not clear which regulatory authorities have held up the process.

There has been a boom in SPAC deals in the last 18 months but this may indicate that regulatory issues are increasingly being considered in such deals, including where the resulting merged company is headquartered. 

"Despite our best efforts to finalize this transaction, we ultimately concluded that going our separate ways was the best path forward for Achronix, ACE and all of our stakeholders," said Robert Blake, CEO of Achronix, in a statement. Blake added: "Throughout 2021, Achronix has continued to build strong momentum, and it remains committed to pursuing additional options to become a public company."

Behrooz Abdi, CEO and chairman of ACE, said: "While we are disappointed by this outcome, we are excited to be in the fast growing industrial and enterprise infrastructure IT sectors, and will be laser-focused on identifying an emerging leader that is well positioned to capture significant value as the market rapidly evolves."

No termination fee is payable as the result of mutual decision to terminate the acquisition agreement.

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