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Achronix Semiconductor In Talks For $2B SPAC Merger Deal: Report

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Achronix Semiconductor In Talks For $2B SPAC Merger Deal: Report

Santa Clara-based Achronix Semiconductor Corp. is discussing a potential merger with special purpose acquisition company ACE Convergence Acquisition Corp (NASDAQ: ACEV), reports Bloomberg.

What Happened: The blank check company has initiated talks with investors to raise capital for the acquisition, people familiar with the matter told the newswire.

Reportedly, the enterprise valuation of the combined entity post-merger is estimated at $2 billion under the current discussions. Bloomberg noted that the talks could still fall apart or the terms could be changed.

An official announcement on the matter could be made by the end of the month.

Why Does It Matter: Achronix manufactures field-programmable gate array— an integrated circuit that allows customers to program the chip after completing the manufacturing process and installing it in a device. To date, the semiconductor startup has raised $135.8 million from 7 investors, according to Crunchbase. Achronix’s competes with companies like Advanced Macro Devices Inc (NASDAQ: AMD) and Intel Corporation (NASDAQ: INTC).

Price Action: ACEV closed 3.11% higher at $10.62 on Tuesday.

Related News: 10 Top SPAC Picks For Investors To Consider In 2021

Photo: Courtesy of Achronix

 

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