Viavi Solutions has announced its acquisition of Spirent Communications in a $1.2 billion all-cash deal, creating a combined company that offers integrated solutions in test, measurement, and assurance for communications networks and cybersecurity.
Viavi Solutions Acquires Spirent Communications in $1.2 Billion Deal
( Credit to: Telecomstechnews )
Viavi Solutions, a global leader in test, measurement, and assurance solutions for communications networks and cybersecurity, has announced its acquisition of Spirent Communications in an all-cash deal valued at approximately $1.2 billion. This strategic move aims to create a combined company that can offer more integrated solutions by leveraging the complementary products and technologies of both companies.
Under the terms of the acquisition, Spirent shareholders will receive 175 pence per share, which includes 172.5 pence in cash and a special dividend of 2.5 pence. This represents a significant premium of 61.4 percent over Spirent's closing share price on March 4th.
The merger between Viavi and Spirent is expected to deliver enhanced product solutions, accelerate growth in new markets, and strengthen innovation. By combining Viavi's leading communications test and measurement and optical technologies with Spirent's high-performance testing and assurance solutions, the companies can create a powerhouse in the industry.
Creating a Powerhouse in the Industry
Oleg Khaykin, President and CEO of Viavi, expressed his excitement about the acquisition, stating, "We are uniting two teams with a shared passion for developing compelling and cutting-edge offerings for customers and a commitment to technological excellence." This collaboration will allow the combined company to provide customers with even more advanced and comprehensive solutions.
To support the acquisition and Viavi's growth plans, private equity firm Silver Lake is making a strategic investment of $400 million in Viavi. This investment will further strengthen Viavi's position in the market and provide additional resources for future expansion.
Spirent's board of directors intends to unanimously recommend the cash offer to its shareholders. Sir Bill Thomas, Chairman of Spirent, highlighted the value and opportunities this acquisition brings, stating, "This all-cash offer recognizes the underlying value of Spirent and provides a significant opportunity for employees, customers, and other stakeholders through what is a highly strategic and highly complementary combination."
A Wholly-Owned Subsidiary of Viavi
The transaction is subject to shareholder and regulatory approvals and is expected to close in the second half of 2024. Upon completion, Spirent will become a wholly-owned subsidiary of Viavi.
Eric Updyke, CEO of Spirent, expressed his enthusiasm about the merger, saying, "Combining with the Viavi Group brings together a highly complementary product offering which can be marketed globally. It will enable Spirent to build on the strategic progress we have made to date, with a partner that has the scale and resources to capitalize on the long-term growth opportunities ahead."
This acquisition marks an exciting development in the test, measurement, and assurance solutions industry. The combined strengths of Viavi and Spirent will undoubtedly propel the companies to new heights, enabling them to better serve their customers and drive innovation in the field of communications networks and cybersecurity.
