Cisco Systems files suit to keep the acquisition of Acacia Communications alive.
In 2019, Cisco Systems reached an agreement to acquire Acacia Communications for a value of 2.6 billion dollars, although in recent months this purchase has been complicated to the point that Acacia Communications has unilaterally decided to terminate said purchase contract. In response, Cisco has filed a lawsuit in Delaware for this transaction to be completed, since, according to the plaintiff company, all the requirements agreed to complete said agreement are met.
Cisco System's objective with this purchase is strategic, as it would allow them to increase its portfolio of optical systems. At the time, Cisco stated that the purchase of Acacia would allow them to meet the most demanding requirements of its customers.
After making these demands, the price of Acacia Communications has seen a spectacular rise since January 8, with a cumulative rise of 56.85%. Yesterday’s trading day saw a rise 31.45%, closing at 113.75 dollars per share, thus breaking the strong lateral that it has seen since the beginning of July 2019, with resistance at the level of 69 dollars per share.
Source: Admiral Markets MetaTrader 5. Acacia Communications daily chart. Data range: from September 4, 2019 to January 15, 2021. Prepared on January 15, 2021 at 11:00 CET. Keep in mind that past returns do not guarantee future returns.
Over the past five years, Acacia’s performance has been:
For its part, Cisco also continues its upward trend, rising by 10 dollars until reaching the level of $45.21 per share, up from the lows of $35.36 of October 29.
As shown in the graph, the price has been supporting its 18-session moving average in black to carry out bullish impulses. This trend has recently been confirmed with the crossing of the 40-session orange moving average to its 200-session red moving average. It is interesting to see how it will perform in the next few days, and we will see if it will be able to reach its current resistance level at $48 per share.
Source: Admiral Markets MetaTrader 5. Cisco Systems Daily Chart. Data range: from September 23, 2019 to January 15, 2021. Prepared on January 15, 2021 at 11:00 CET. Keep in mind that past returns do not guarantee future returns.
Over the past five years, Cisco’s performance has been:
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