Achronix and ACE Convergence Acquisition Corp Mutually Agree to Terminate Merger Agreement
Achronix Semiconductor Corporation, a leader in high-performance field-programmable gate arrays (FPGAs) and embedded FPGA (eFPGA) IP, and ACE Convergence Acquisition Corp., a special-purpose acquisition company focused on the Industrial and Information Technology sectors, announced that both companies have mutually agreed to terminate their merger agreement , effective immediately.
The proposed merger, announced in January 2021, was conditioned on the satisfaction of defined closing conditions, including obtaining necessary regulatory approvals within the timeframe contemplated by the Agreement. The parties believe that they will not be able to complete the transaction by the July 15, 2021 deadline or some reasonable time thereafter.
“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. 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,” said Robert Blake, President and CEO of Achronix. “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. Throughout 2021, Achronix has continued to build strong momentum, and it remains committed to pursuing additional options to become a public company.”
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“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,” said Behrooz Abdi, CEO and Chairman of ACE. “Looking ahead, we have full confidence that we will leverage our deep sector knowledge and industry connections to identify the next compelling and differentiated business combination opportunity and complete the transaction within the tenure of our acquisition platform.”