Keysight outbids Viavi in £1.2bn takeover of Spirent Communications
Keysight Technologies has reached a deal to buy for £1.16bn, outbidding US peer Viavi Solutions which had already agreed to take over the UK telecoms group earlier this month.
Spirent said on Thursday it is now recommending a 201.5p-per-share offer from Keysight, which represents a "superior proposition" for shareholders at a 26.5p or 15% premium to Viavi's offer on 5 March.
"Accordingly, the Spirent directors have unanimously withdrawn their recommendation of the Viavi offer and intend to adjourn the Viavi offer shareholder meetings," the company said in a statement.
The acquisition value comprises 199p in cash and a 2.5p special dividend for each Spirent share.
Spirent chair Bill Thomas said the board was "pleased to recommend" Keysight's offer. "Spirent is a business with many strengths, deep customer relationships and talented people. This offer provides our shareholders with even greater value in cash for their shares at an attractive premium while at the same time protecting the fundamental character of Spirent for all stakeholders," he said.
California-based Keysight, which makes electronics test and measurement equipment and software like network analysers and oscilloscopes, views Spirent's business as a "strong fit", according to its chief executive and president Satish Dhanasekaran.
"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 delivery of its strategic vision," Dhanasekaran said.
Keysight, listed on the NYSE with a market cap of $28bn, reported revenues of $5.46bn for its latest financial year, compared with Spirent which generated $474m.
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