Blank Check Firm ACE Convergence and Achronix Drop $ 2 Billion Merger
July 12 (Reuters) – Achronix Semiconductor Corp and blank check firm ACE Convergence Acquisition Corp announced Monday that they have agreed to end their $ 2.1 billion merger announced in January.
The deal was subject to certain closing conditions, including obtaining necessary regulatory approvals, the companies said, adding that they would not be able to complete the merger before or after the July 15 deadline. Chief Executive Officer Robert Blake said that Chronix “remains committed to seeking additional options to become a public company.”
Neither party will be required to pay a termination fee because the decision to terminate the deal was mutual, the companies said.
Achronix, founded in 2004, provides 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 the proceeds of an initial public offering to buy a private company and then go public.
ACE raised $ 230 million when it went public in July of last year. Shares of the blank check company were flat at $ 9.95 in pre-market trading.
Since SPACs typically face a two-year deadline to find a merger target, ACE has until July of next year to search for another company to go public. (Reporting by Niket Nishant in Bangalore; Editing by Sriraj Kalluvila)