VIAVI Solutions is acquiring Spirent Communications plc in a cash offer that values the acquisition at £1,005 million, or $1,277 million based on Monday’s British pound sterling to U.S. dollar exchange rate, the two companies announced today. The acquisition is expected to close during the second half of 2024, subject to shareholder approvals and other customary closing conditions.
In connection with the deal, private equity firm Silver Lake will make a $400 million long-term strategic investment in VIAVI.
Spirent shareholders will receive 172.5 pence per Spirent share in cash, as well as a special dividend of 2.5 pence per Spirent share in lieu of a final dividend for last year.
VIAVI provides network test, monitoring and assurance solutions for telecommunications and other segments on a global basis. Spirent Communications, also a global provider, specializes in automated test and assurance solutions for networks, cybersecurity and positioning.
Merging their complementary product portfolios and services will enable the combined group to deliver solutions for various markets and applications, such as R&D labs, service providers, data centers, and mission-critical infrastructure, according to the announcement. VIAVI also expects it will provide diversification and accelerated growth in “attractive, adjacent market verticals.”
The company added that the combination of VIAVI’s and Spirent’s current and future product offerings is expected to position the combined group to be able to offer the market innovative solutions across high-growth cloud service providers, enterprise/IT networks, 5G private networks, 6G+ and positioning, navigation and timing verticals.
Earlier this year, Spirent predicted growth in 5G stand alone networks in 2024, following sluggish performance last year.
There are other expected potential benefits of the acquisition, including:
- Greater engineering, research and development and design capabilities to accelerate new technology development and product innovation, particularly with artificial intelligence and machine learning, security, cloud-native architecture and automation.
- Additional financial and operational resources to continue the leadership of these companies in research and development and to deliver products to new verticals to help customers solve difficult challenges.
“VIAVI is proud to help enable its global customers to pursue innovation across the wide range of industries it serves,” said Oleg Khaykin, president and CEO of VIAVI, in a prepared statement. “Combining our leading communications test and measurement and optical technologies and Spirent’s high-performance testing and assurance solutions is expected to deliver enhanced product solutions and applications, accelerate growth in new markets and strengthen innovation through expanded engineering and design capabilities.
“Further, we are uniting two teams with a shared passion for developing compelling and cutting-edge offerings for customers and a commitment to technological excellence. We are pleased to welcome a strategic, long-term investment from Silver Lake in connection with the acquisition. Silver Lake has an outstanding track record of supporting leading technology companies through both organic growth investments and scale acquisitions,” Khaykin said.
