FX.co ★ Viavi Believes Keysight, Spirent Combination Will Lead To Limited Customer Choice

Viavi Solutions has commented on the proposed cash purchase of Spirent Communications Plc by Keysight Technologies. The communication equipment firm believes that the acquisition will solidify Keysight's commanding position in several product areas, resulting in potential diminished consumer choice.

Viavi perceives the acquisition as representing a solid value, particularly given its minimal business overlap with Spirent, in comparison to Keysight's activities.

The purchase agreement, disclosed on March 28, reveals that each Spirent shareholder will receive an offer of 201.5 pence per share from Keysight. This comprises 199 pence per share, with an added special dividend of 2.5 pence. This places the value of Spirent in the vicinity of £1.16 billion.

Previously, on March 5, Spirent had declared that Viavi Solutions, along with its acquisitions arm or Bidco, had agreed to a proposed cash purchase of Spirent. In this agreement, each Spirent shareholder would receive 175 pence per share, which includes 172.5 pence in cash and a special dividend of 2.5 pence per share. The total value of the Spirent acquisition under this agreement would be around £1.005 billion.

In connection with the acquisition, Silver Lake is set to make a long-term strategic investment of $400 million in Viavi. Ken Hao, Chairman and a Managing Partner of Silver Lake, is slated to join Viavi's Board of Directors.