Spirent assurance quality network solution

Acquisition of Spirent: Keysight outbids Viavi’s offer

  • On March 5, 2024, US-based Viavi Solutions announced its intention to acquire UK-based Spirent Communications for around 1,177 million euros.
  • But its compatriot Keysight Technologies would have none of it. On March 28, 2024, the latter announced its intention to outbid Viavi.
  • The American company proposes to acquire Spirent’s entire share capital for a cash consideration of 199 pence per Spirent share. This values the British company at around 1,357 million euros.

On March 5, 2024, Viavi had indicated that “the directors of Spirent who hold Spirent shares have signed irrevocable agreements in favor of the acquisition”. The latter have now changed their minds, as Keysight in turn announces that “Spirent’s board of directors intends to unanimously recommend the offer, which is conditional, inter alia, on approval by the requisite majority of Spirent shareholders at Spirent’s court meeting and general meeting, as well as regulatory approval.”

Satish Dhanasekaran, Keysight’s President and CEO, sees Spirent’s activities as part of its long-term strategy for software-centric solutions. The Californian firm sees a strategic synergy between the two companies, which offer complementary products for the communications, aerospace and defense, automotive and other sectors. Thanks to the reinforcement of Spirent’s solutions, Keysight intends to seize new opportunities in a market worth up to $1.5 billion.

Spirent Communications is a specialist in automatic test and quality assurance solutions for networks, cybersecurity and positioning. The British company, which employs 1,500 people worldwide, has forecast sales of $474 million in 2023, up from $607 million in 2022.

Viavi Solutions is a provider of test and measurement solutions for wired, optical and wireless telecommunications networks. Based in Arizona, the American company employs around 3,600 people worldwide. In 2023, it reported sales of $1.1 billion, down 14.4% on the previous year.

Keysight Technologies offers electronic test and measurement instruments as well as design, emulation and test software solutions. The California-based company, which employs some 15,000 people worldwide, reported sales of $5.46 billion in 2023, with GAAP net income of $1.06 billion and non-GAAP net income of $1.49 billion (GAAP: Generally Accepted Accounting Principles).