Keysight Technologies is making steady progress on its planned all-cash acquisition of Spirent Communications PLC. In April this year, Keysight Technologies outbid Viavi Solutions to buy Spirent Communications for $1.46 Billion. With regulatory approvals well underway and shareholder support secured earlier this year, the acquisition remains on track to be finalized in the first half of Keysight’s fiscal 2025, which ends on April 30, 2025.
Strategic Divestment to Streamline Acquisition
To meet regulatory requirements outlined in the Scheme Document, Keysight has initiated a competitive auction process to divest Spirent’s high-speed ethernet and network security business lines. This proposed divestment aligns with the acquisition’s broader goal of ensuring compliance while retaining core strategic assets. The sale is expected to be finalized concurrently with the acquisition’s completion.
Global Regulatory Updates
Keysight has proactively engaged with multiple regulatory bodies to secure the necessary clearances:
- China: Keysight and Spirent filed for approval with the State Administration for Market Regulation (SAMR) on November 25, 2024. Both parties continue collaborative efforts to address regulatory requirements under China’s Anti-Monopoly Law.
- France: The French Ministry for the Economy, Finance, and Industry has conditionally approved the acquisition.
- Germany and the UK: Keysight has secured approvals from the German Federal Ministry for Economic Affairs and Climate Action and the UK’s Chancellor of the Duchy of Lancaster under the National Security and Investment Act 2021.
These approvals confirm compliance with critical conditions (3.4, 3.5, and 3.6) in the Scheme Document.
Shareholder and Court Sanction Updates
Spirent shareholders approved the acquisition during meetings held on May 22, 2024. The final sanction of the scheme by the Court remains a key condition for the acquisition’s completion. Keysight is actively working to fulfill the remaining conditions, ensuring a seamless process.
Expected Timeline
Keysight has reaffirmed its expectation that the acquisition will become effective during the first half of its fiscal 2025. While the precise timeline depends on pending regulatory clearances, both parties are closely monitoring the process and will provide updates as necessary.
About the Acquisition
Announced on March 28, 2024, the acquisition aims to strengthen Keysight’s portfolio in automated testing, network security, and connected technologies. Spirent’s expertise in automated test solutions for 5G, SD-WAN, cloud, and positioning technologies complements Keysight’s leadership in design, emulation, and test solutions, creating a robust platform for innovation.
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