Keysight Technologies (NYSE:KEYS) has announced its intent to purchase Spirent Communications (OTCPK:SPMYY) (OTCPK:SPNUF), placing a higher bid than Viavi Solutions (VIAV) for the acquisition of the U.K.-based company specializing in telecom network testing, according to Bloomberg News.
The deal proposed by Keysight values Spirent at 201.5 pence per share, inclusive of a 2.5 pence special dividend, leading to an equity valuation of £1.16 billion (approximately $1.5 billion), based on information from the companies involved.
Commenting on the acquisition, Satish Dhanasekaran, President & Chief Executive Officer of Keysight, said: “Spirent has a differentiated portfolio, which is a strong fit for Keysight. Both companies share a common focus on empowering and accelerating high-value solutions for customers. 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. Keysight’s long-term customer relationships, industry expertise and global reach will help Spirent drive product development and execute on its full potential. With similar cultures valuing customer-centricity and high-performance, we believe that Keysight will be an excellent home for Spirent to thrive and deliver sustainable, long-term growth. Our superior Offer recognizes the value of Spirent’s achievements to-date, and the exciting prospects of the combination of our complementary product portfolios to provide end-to-end solutions for customers across their lifecycle needs.”
Following the announcement, Spirent Communications’ stock witnessed an approximate 11% increase, reaching 198.6 pence per share on the London Stock Exchange on Thursday.
This move by Keysight comes after Viavi Solutions extended an all-cash proposal earlier in the month to acquire Spirent for about £1.005 billion, or 172.5 pence per share.
In response to Keysight’s superior offer, Spirent’s board has retracted their earlier endorsement of Viavi’s bid.
The successful completion of Keysight’s acquisition hinges on the acceptance of the offer by investors with at least 75% of the voting rights, in addition to obtaining the necessary regulatory approvals.
