Keysight Technologies CEO: Why $1.5B Spirent Acquisition Is A ‘Strong Fit’

‘Spirent has a differentiated portfolio, which is a strong fit for Keysight,’ says CEO Satish Dhanasekaran.

Keysight Technologies is acquiring telecommunications company Spirent Communications for approximately $1.5 billion after outbidding Viavi Solutions, which announced its intent to buy Spirent just weeks ago for $1.3 billion.

“Spirent has a differentiated portfolio, which is a strong fit for Keysight,” said Satish Dhanasekaran, president and CEO of Keysight, in a statement Thursday. “Keysight’s long-term customer relationships, industry expertise and global reach will help Spirent drive product development and execute on its full potential.”

This month, Viavi had unveiled its plans to acquire U.K.-based Spirent for approximately $1.3 billion. As part of the deal, private equity firm Silver Lake said it would make a $400 million investment in Chandler, Ariz-based Viavi.

However, Spirent’s board of directors recently withdrew its recommendation of the Viavi offer.

Santa Rosa, Calif.-based Keysight said Spirent’s board intends to unanimously recommend Keysight’s cash offer of $1.463 billion.

Keysight Eyes $1.5 Billion New Opportunity Via Spirent Acquisition

Keysight said it expects new serviceable available market opportunities of up to $1.5 billion following the acquisition of Spirent, which has approximately 1,500 employees.

Keysight and Spirent are focused on enabling IT megatrends across multiple end markets, including communications, aerospace and defense, automotive and enterprise sectors, Dhanasekaran said.

In addition, Spirent’s business is aligned with Keysight’s long-term software-centric solutions strategy.

Spirent is a global provider of automated test and assurance solutions for networks, cybersecurity and positioning. The company provides products, services and managed solutions that address the test, assurance and automation challenges of technologies such as 5G, SD-WAN, cloud, autonomous vehicles and more.

Keysight offers design, emulation and test solutions to help engineers develop and deploy more quickly throughout the entire product life cycle. The company targets customers in communications, industrial automation, aerospace and defense, automotive, semiconductor and general electronics markets.

Dhanasekaran said the two companies will provide end-to-end solutions for customers across their life-cycle needs.

“In Keysight, Spirent will join a platform of significant customer scale with the capacity to provide the necessary capital and resources to help Spirent grow and accelerate the delivery of its strategic vision,” said Dhanasekaran.