VIAVI acquires Spirent’s Ethernet and network security testing business from Keysight for $410M
For more on Keysight and Spirent:
VIAVI is acquiring Spirent's Ethernet and network security business lines from Keysight Technologies for $410 million in cash.
After meeting customary closing adjustments and conditions, the deal includes an additional $15 million contingent cash consideration to be paid at closing.
When the acquisition meets regulatory approval, the companies expect it to close in the second quarter of 2025, shortly after the close of Keysight's acquisition of Spirent.
Enhancing Ethernet status
For VIAVI, acquiring Spirent’s Ethernet assets enhances its Ethernet testing platform and immediate infusion of software, hardware, and protocol domain expertise across network layers, enhancing its engagement in the growing Ethernet, Security, AI, and digital infrastructure end markets.
“This transaction brings to VIAVI an advanced ethernet test and security product portfolio in the NEMs, Enterprise, Service Providers, Data Center Ecosystem, and Government segments,” said Oleg Khaykin, President and CEO of VIAVI, in a release announcing the deal.
The transaction is expected to add approximately $180 million to VIAVI's NSE revenue in the first 12 months after closing and be accretive to EPS 12 months after closing. VIAVI anticipates utilizing its US net operating losses to lower the combined group's blended non-GAAP tax rate.
Ending a bidding war
This deal ends the battle between VIAVI and Keysight for control of Spirent.
Last year, VIAVI initially offered to purchase Spirent for $1.27 billion, intending to enhance its ability to serve a broad range of service providers, data centers, and other infrastructure opportunities.
Keysight outbid VIAVI for Spirent for Keysight Technologies with a $1.46 billion offer for Spirent Communications, challenging VIAVI’s earlier bid for the British-based test and measurement company.
At that time, Spirent had withdrawn its support for Viavi’s offer, which was 15% lower than Keysight’s bid.
For related articles, visit the Business Topic Center.
For more information on high-speed transmission systems and suppliers, visit the Lightwave Buyer’s Guide.
To stay abreast of fiber network deployments, subscribe to Lightwave’s Service Providers and Datacom/Data Center newsletters.
Sean Buckley
Sean is responsible for establishing and executing the editorial strategies of Lightwave and Broadband Technology Report across their websites, email newsletters, events, and other information products.