Keysight acquires Spirent for $1.46 billion

Keysight Technologies announced its intention to acquire Spirent Communications, outbidding Viavi Solutions (VIAV) for the British company that specializes in testing telecommunications networks, Bloomberg reported.

Keysight's proposed deal values ​​Spirent at 201.5 pence per share, including a special dividend of 2.5 pence, resulting in an equity valuation of 1.16 billion pounds (approximately $1.5 billion), according to information from participating companies.

Commenting on the acquisition, Satish Dhanasekaran, President and CEO of Keysight Technologies, said: "Spirent has a differentiated product portfolio that is a perfect fit for Keysight Technologies. Both companies share a focus on delivering and accelerating high-value solutions for customers. Solution. Spirent will join Keysight and join a platform with significant customer scale that can provide the necessary capital and resources to help Spirent grow and accelerate its strategic vision.

"Keysight's long-standing customer relationships, industry expertise and global reach will help Spirent drive product development and realize its full potential. With a similar culture that values ​​customer centricity and high performance, we believe Keysight will Be the great home for Spirent to thrive and achieve sustainable long-term growth. Our exceptional offer recognizes the value of Spirent's achievements to date and the combination of our complementary product portfolio to deliver on our customers' needs across their lifecycles. An exciting prospect for end-to-end solutions,” said Satish Dhanasekaran.

After the news was announced, Spirent Communications' shares rose about 11% on the London Stock Exchange on Thursday, reaching 198.6 pence per share.

Keysight's move comes after Viavi Solutions earlier this month made an all-cash proposal to acquire Spirent for about £1.005 billion, or 172.5 pence per share.

In response to Keysight's bid, Spirent's board withdrew its previous endorsement of Viavi's bid.

The successful completion of the Keysight acquisition is subject to acceptance of the offer by investors holding at least 75% of the voting rights, in addition to obtaining necessary regulatory approvals.

Keysight Technologies is buying telecommunications company Spirent Communications Inc. for about $1.5 billion after outbidding Viavi Solutions, which a few weeks ago announced its intention to acquire Spirent for $1.3 billion.

“Spirent’s differentiated product portfolio is a perfect fit for Keysight,” Keysight President and CEO Satish Dhanasekaran said in a statement Thursday. “Keysight’s long-term customer relationships, industry expertise and global reach will help Spirent drive product development and realize its full potential."

This month, Viavi unveiled plans to acquire Britain's Spirent for about $1.3 billion. As part of the deal, private equity firm Silver Lake said it would invest $400 million in Chandler, Arizona-based Viavi.

Spirent's board of directors intends to unanimously recommend Keysight's $1.463 billion cash offer, Santa Rosa, Calif.-based Keysight said.

Keysight said the acquisition of Spirent, which employs about 1,500 people, is expected to create up to $1.5 billion in new available market opportunities.

Dhanasekaran said Keysight and Spirent are committed to driving IT megatrends across multiple end markets, including communications, aerospace and defense, automotive and enterprise.

Additionally, Spirent's business is aligned with Keysight's long-term software-centric solutions strategy.

Spirent is a global provider of automated testing and assurance solutions for networking, network security and positioning. The company provides products, services and managed solutions that solve the testing, assurance and automation challenges of 5G, SD-WAN, cloud, autonomous vehicles and other technologies.

Keysight provides design, simulation and test solutions that help engineers develop and deploy faster throughout the product lifecycle. The company targets customers in the communications, industrial automation, aerospace and defense, automotive, semiconductor and general electronics markets.

Dhanasekaran said the two companies will provide end-to-end solutions for the entire lifecycle needs of customers.

"Keysight will join a platform with significant customer scale and the ability to provide the necessary capital and resources to help Spirent grow and accelerate its strategic vision," Dhanasekaran said.