// startup autopsy

Acacia Communications

The photonic chip leader that sued Cisco into buying it after Cisco tried to walk away mid-deal.

crisis survivedAcqui-hire

Founded	2009
Closed	2021
Country	USA
Sector	Hardware
Founder	Benny Mikkelsen, John Doescher

Key Events Timeline

2009

FOUNDING

Benny Mikkelsen and John Doescher founded Acacia Communications in Maynard, MA to build coherent photonic integrated circuits for data center interconnects.

2019-07

ACQUISITION ATTEMPT

Cisco announced acquisition of Acacia for $2.6B ($70/share) to strengthen optical networking portfolio.

2020-12

REGULATORY ACTION

Cisco attempted to terminate the deal citing COVID-related material adverse change; Acacia filed lawsuit in Delaware court to force completion.

2021-03

ACQUISITION ATTEMPT

Cisco settled and closed acquisition at $115/share ($4.5B total), nearly double original price; Acacia absorbed into Cisco Silicon One group.

Full Analysis

Analyst plan

Documented cause

Acacia Communications was not a failure in the traditional sense but its independent existence ended in a forced Cisco acquisition for $4.5B after a near-collapse. Cisco originally agreed to acquire Acacia in 2...

019 for $2.6B, then attempted to terminate the deal in 2020 citing material adverse change during COVID. Acacia sued and won, forcing Cisco to close the acquisition at $115/share in March 2021, elimin

Verified lesson

“Deep tech acquisition deals need ironclad MAC clauses; walk-away attempts destroy team morale regardless of legal outcom...”

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HypeCycle · MoatType · ResearchTags

Acacia Communications raised €155M and still failed. See the documented cause, verified lesson and all metrics.

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