VIAVI Solutions Inc. announced on March 3, 2025, that it has signed a definitive agreement to acquire Spirent Communications plc's high-speed Ethernet and network security business lines from Keysight Technologies, Inc. The transaction is valued at $410 million in base cash consideration, with an additional $15 million in contingent cash consideration payable at closing. This acquisition is conditional on regulatory approvals and is expected to close in the second quarter of calendar year 2025, shortly after Keysight's acquisition of Spirent.
This transaction represents a significant step in VIAVI's NSE growth strategy, adding a complementary and synergistic product portfolio. The acquired business has a 30-year history of facilitating end-to-end test and validation of network performance, bringing advanced Ethernet test and security products to VIAVI across NEMs, Enterprise, Service Providers, Data Center Ecosystem, and Government segments. The U.S. Department of Justice later confirmed on June 3, 2025, that Keysight would divest these Spirent units to VIAVI as part of a consent agreement to resolve antitrust concerns.
The acquisition is expected to add approximately $180 million to VIAVI's NSE revenue in the first 12 months after closing and is projected to be accretive to EPS within 12 months. VIAVI plans to finance the transaction with a $425 million Term Loan B, with the potential to increase the amount for general corporate purposes. This strategic move is anticipated to enhance VIAVI's engagement in the growing Ethernet, Security, AI, and digital infrastructure end markets.
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