Keysight Technologies Plans Formal Bid for Spirent, Beating Viavi Solutions

U.S.-based Keysight Technologies is gearing up to make a formal offer for UK-based Spirent Communications, Sky News reported.
Keysight 5G testing solutionsKeysight is eyeing an offer valued at approximately 200 pence per share for Spirent, translating to a deal worth around £1.15 billion ($1.45 billion). This development follows closely on the heels of a previous agreement between Spirent and U.S.-listed communications equipment company Viavi Solutions, wherein Viavi had proposed acquiring Spirent for roughly £1.01 billion.

Under Viavi’s proposal, Spirent shareholders were to receive 175 pence per share. However, Keysight’s bid represents a significant premium of 84.5 percent over Spirent’s closing price on March 4, eclipsing Viavi’s premium of 61.4 percent.

The report suggests that while some institutional shareholders in Spirent indicated support for Viavi’s offer, they deemed it opportunistic and hinted at openness to alternative bids, potentially leaving room for Keysight to enter the fray.

Spirent Communications, Viavi Solutions, and Keysight Technologies have not provided immediate comments, Reuters news report said.

The potential acquisition bid comes against the backdrop of Keysight Technologies’ recent financial performance. In its first fiscal quarter ended January 31, 2024, Keysight reported revenue of $1.26 billion, down from $1.38 billion in the same period the previous year. Net income stood at $172 million, or $0.98 per share, compared to $260 million, or $1.45 per share, in the first quarter of 2023.

Looking ahead, Keysight anticipates revenue for the second fiscal quarter of 2024 to fall within the range of $1.19 billion to $1.21 billion. News Desk