Viavi Snaps Up Spirent's High-Speed Ethernet Unit, Expanding AI & Security Reach

Keysight Technologies Inc. KEYS shares are trading higher premarket on Monday after the company entered into a definitive agreement to sell Spirent Communications plc’s High-Speed Ethernet and Network Security business to Viavi Solutions Inc. VIAV.

The transaction includes a base cash consideration of $410 million, with an additional contingent payment of $15 million at closing, subject to standard adjustments and conditions.

Notably, Wells Fargo has committed to providing a $425 million Term Loan B to support the financing of the transaction.

In March 2024, the boards of Spirent and Keysight agreed on the terms and conditions of a recommended all-cash acquisition of Spirent to be effected through a Court-sanctioned scheme of arrangement under Part 26 of the Companies Act 2006. 

The acquisition remains contingent on regulatory approvals and is anticipated to be finalized in the second quarter of 2025, following the completion of Keysight’s acquisition of Spirent.

Keysight anticipates that the sale will be finalized soon after the Spirent acquisition is completed.

This acquisition strengthens VIAVI’s Ethernet testing platform by integrating complementary capabilities while adding valuable expertise in software, hardware, and protocol domains across network layers. It positions VIAVI to expand its presence in the growing markets of Ethernet, security, AI, and digital infrastructure.

The acquisition is projected to contribute around $180 million to VIAVI’s NSE revenue within the first year post-closing and is expected to be accretive to EPS within 12 months.

VIAVI plans to leverage its U.S. net operating losses to reduce the combined company’s blended non-GAAP tax rate.

Oleg Khaykin, President and CEO of VIAVI said, “This transaction brings to VIAVI an advanced ethernet test and security product portfolio in the NEMs, Enterprise, Service Providers, Data Center Ecosystem and Government segments.”

As of December 28, 2024, VIAVI’s cash and cash equivalents stood at $512.8 million.

In a separate release, Keysight disclosed a strategic partnership with Aalyria to aid the development and validation of 5G Non-Terrestrial Networks (NTN).

As per the deal, the companies will integrate Aalyria’s AI-powered Spacetime platform with Keysight’s NTN RAN RICtest solutions.

This collaboration will provide a benchmark testbed for NTN constellation design, enabling real-world simulations and intelligent optimization of spectrum, power, beams, and beam-hopping across satellite and terrestrial networks.

Price Action: KEYS shares are up 1.67% at $162.20 premarket at the last check Monday.

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