Viavi Solutions is set to gain a strategic acquisition by snapping up Spirent Communications’ assets, specifically the high-speed Ethernet and network security segments. This development follows the ongoing acquisition of Spirent by Keysight Technologies, which has decided to divest certain assets in the process.
Viavi was outbid by Keysight, who offered nearly $1.5 billion for Spirent, surpassing Viavi’s $1.3 billion bid. However, Viavi is poised to spend $425 million on Spirent’s high-speed Ethernet and network security business, financing the deal through a Wells Fargo loan. This transaction is likely to conclude in the second quarter of 2025, shortly after Keysight finalizes its acquisition of Spirent.
According to Oleg Khaykin, president and CEO of Viavi, this latest acquisition propels their NSE growth strategy forward. For over three decades, Spirent’s expertise in high-speed Ethernet and network security has spearheaded the testing and validation of network performance. Viavi will benefit from a bolstered product range, enhancing its position in the network equipment manufacturers (NEMs), enterprise, service providers, data center ecosystems, and government sectors.
This acquisition will enrich Viavi’s existent Ethernet testing capabilities. It also provides an immediate enhancement of software, hardware, and protocol knowledge across various network layers. The added expertise will better Viavi’s standing in the fast-evolving Ethernet, Security, AI, and digital infrastructure sectors. Additionally, the acquisition is expected to contribute to Viavi’s earnings per share within a year of closing the deal.
From a strategic perspective, this acquisition signals exciting times for Viavi. The company is capitalizing on the divestments resulting from a larger acquisition, thereby expanding its reach and capabilities.