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Blank-check firm ACE Convergence, Achronix scrap $2 bln merger

Reuters2021-07-12

July 12 (Reuters) - Achronix Semiconductor Corp and blank-check firm ACE Convergence Acquisition Corp said on Monday they had agreed to terminate their $2.1 billion merger announced in January.

The deal was subject to meeting certain closing conditions, including getting the necessary regulatory approvals, the companies said, adding they would be unable to close the merger by the July 15 deadline or thereafter.

Chief Executive Officer Robert Blake said Achronix "remains committed to pursuing additional options to become a public company."

Neither party will be required to pay a termination fee as the decision to terminate the deal was mutual, the companies said.

Achronix, founded in 2004, supplies field programmable gate arrays, the electronic components used to build reconfigurable digital circuits, for use in 5G equipment and cloud computing.

Special purpose acquisition companies (SPACs) like ACE use proceeds from an initial public offering to buy a private company and then take it public.

ACE raised $230 million in its IPO in July last year. Shares of the blank-check firm were flat at $9.95 in premarket trading.

Since SPACs typically face a two-year deadline to find a merger target, ACE has until July next year to hunt for another company to take public.

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  • Yuanball
    ·2021-07-12
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    ·2021-07-12
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