Lacking approval FPGA firm Achronix calls off $2 billion SPAC deal

July 12, 2021 // By Peter Clarke
Lacking approval FPGA firm Achronix calls off SPAC deal
FPGA company Achronix Semiconductor Corp. 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.

The proposed merger, announced in January 2021 (see FPGA firm Achronix to go public via SPAC ), 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.

The deal valued Achronix at about $2.1 billion. It is not clear which regulatory authorities have held up the process. Qualcomm's proposed acquisition of NXP Semiconductors for $44 billion back in 2017 and 2018 collapsed due to lack of regulatory engagement by China amongst others (see NXP acquisition by Qualcomm about to collapse ).

"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.

Related links and articles:

www.achronix.com

News articles:

FPGA firm Achronix to go public via SPAC

NXP acquisition by Qualcomm about to collapse

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