ACE Convergence Acquisition Corp (NASDAQ: ACEV) and Achronix Semiconductor Corporation have reached a mutual agreement to terminate their merger deal. The termination of the merger agreement is effective immediately.
Terminating the merger
Back in 2021, the two announced their merger, and they had to conform to some particular defined closing conditions. One of the conditions had to do with seeking out the necessary regulatory approvals within the timeframe stipulated by the agreement.
ACE Convergence Acquisition Corp and Achronix Semiconductor Corporation reached a point where they felt they couldn’t move forward with the transaction. TheThe July deadline had been too close for them, and so they decided to terminate it instead.
The President and CEO of Achronix, Robert Blake, says that both the companies had channeled their best efforts towards ensuring they close the deal, but it didn’t play in their favor. He discloses that they had closure and decided that going their separate ways was the best way forward. In other words, going separate ways seemed the best way to go for stakeholders and the two companies.
Blake opined, “Achronix is in a strong financial and operational position, uniquely situated to provide flexible FPGA-based compute solutions for data-acceleration applications across a nearly $10 billion market opportunity by 2025. As the only independent company to offer high-end FPGA and embedded FPGA IP solutions, Achronix is well positioned to execute on high-growth opportunities.”
Achronix has been performing remarkably throughout 2021. That performance inspires it to do more to scale higher to pursue additional options to become a public company.
The Chairman of ACE Behrooz Abdi admits that the outcome was rather disappointing for them. However, he takes solace in the point that they happen to be among the players in fast-growing industrial and enterprise infrastructure IT sectors. The mutual termination decision is such that none of them will be paying the other termination fees.