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If the deal gets the go-ahead, it will mean the removal of UK listed Spirent from the London Stock Exchange
This week, US technology company Viavi Solutions has made a £1 billion takeover bid for UK-based telecoms testing group Spirent Communications.
Viavi offered 175 pence per share for Spirent, with Chief Executive Oleg Khaykin saying in a press release that the deal would “deliver enhanced product solutions and applications, accelerate growth in new markets and strengthen innovation through expanded engineering and design capabilities”.
The deal is expected to help Viavi Solutions boost its expertise in artificial intelligence and machine learning, security, cloud-native architecture, and automation.
Viavi, who claim they are a “global leader in communications test and measurement and optical technologies” have outlined their strategic and financial rationale for the acquisition, saying they expect the deal to create a leading provider of test, assurance and security solutions; provide diversification and higher growth; achieve better R&D; and reduce costs, with operational efficiencies set to decrease by $75 million two years after the acquisition.
“Spirent has undergone a period of significant transformation and growth over recent years and I am proud of the significant progress we have made, thanks to the efforts and commitment of our people,” said Spirent CEO Eric Updyke.
“More recently, however, we have endured significant challenges due to the macro backdrop and the impact of this on our core end markets. These conditions are likely to continue for some time,” he continued.
The acquisition will be funded by a combination of Viavi’s existing cash, an $800 million 7-year loan from Wells Fargo Bank, and a $400 million investment from investment firm Silver Lake.
The deal is subject to standard regulatory approval and is set to close in the second half of the year.
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