VIAVI To Buy Spirent's High-Speed Ethernet And Network Security Testing Business From Keysight

(RTTNews) - VIAVI Solutions Inc. (VIAV), a provider of network test, monitoring and assurance solutions, on Monday announced that it has signed a definitive agreement to acquire Spirent Communications plc's (SPT.L, SPM) high speed ethernet and network security business lines.

The assets will be bought from Keysight Technologies, Inc., which is already in deal to buy Spirent, for $410 million base cash consideration and an additional $15 million contingent cash consideration to be paid at closing, subject to customary closing adjustments and conditions.

VIAVI noted that the acquisition is expected to close in the second quarter of calendar year 2025, conditional on regulatory approvals, shortly after the close of Keysight's acquisition of Spirent.

It was in March 2024 that Spirent and Keysight announced their agreement on the terms and conditions of a recommended all-cash acquisition.

In connection with satisfying the regulatory conditions for the Spirent acquisition, Keysight was required to divest Spirent's high-speed ethernet and network security business lines.

For VIAVI, the deal is expected to add around $180 million to VIAVI's NSE revenue in the first 12 months after closing and expected to be accretive to earnings per share 12 months after closing. VIAVI anticipates utilizing its US net operating losses to lower the combined group's blended non-GAAP tax rate.

According to VIAVI, the acquisition provides a complementary addition to its ethernet testing platform. It also provides an immediate infusion of software, hardware and protocol domain expertise across network layers to enhance its engagement in the growing Ethernet, Security, AI, and digital infrastructure end markets.

Wells Fargo has committed to provide a $425 million Term Loan B to fund the deal. In addition, VIAVI may elect to increase the amount of the Term Loan B for general corporate purposes on a best-efforts basis, subject to market conditions.