VIAVI Solutions agreed to acquire Spirent Communications, a global provider of automated test and assurance solutions for networks, cybersecurity, and positioning, for approximately £1,005 million or $1,277 million, based on the exchange rate on March 4, 2024.
In addition, Silver Lake is making a US$400 million long-term strategic investment in Viavi in connection with the acquisition.
Viavi said it believes that acquiring Spirent will significantly enhance its offerings in test, measurement, and assurance solutions, especially for emerging technologies like 5G and 6G. This combination is expected to deliver integrated, high-performance solutions and expand the product and service range available to both new and existing customers. Ultimately, Viavi sees this merger as a strategic move to foster product innovation and generate long-term value.
“VIAVI is proud to help enable its global customers to pursue innovation across the wide range of industries it serves,” said Oleg Khaykin, President and CEO of VIAVI. “Combining our leading communications test and measurement and optical technologies and Spirent’s high-performance testing and assurance solutions is expected to deliver enhanced product solutions and applications, accelerate growth in new markets and strengthen innovation through expanded engineering and design capabilities. Further, we are uniting two teams with a shared passion for developing compelling and cutting-edge offerings for customers and a commitment to technological excellence. We are pleased to welcome a strategic, long-term investment from Silver Lake in connection with the Acquisition. Silver Lake has an outstanding track record of supporting leading technology companies through both organic growth investments and scale acquisitions.”
“Combining with VIAVI brings together a highly complementary product offering which can be marketed globally,” said Eric Updyke, Chief Executive Officer of Spirent. “It will enable Spirent to build on the strategic progress we have made to date, with a partner that has the scale and resources to capitalize on the long-term growth opportunities ahead. The combination of VIAVI and Spirent creates a stronger business that will be better able to compete, and we are confident in the opportunities this will bring for our stakeholders.”
- Spirent Communications, a British multinational telecommunications testing company, has a rich history dating back to its founding in 1936 as Goodliffe Electric Supplies. Over time, it evolved through various name changes, eventually adopting the name “Spirent” in 2000. The company’s headquarters are in Crawley, West Sussex, UK, while its operational headquarters are in San Jose, California, USA. Spirent is publicly listed on the London Stock Exchange and is part of the FTSE 250 Index. Under the leadership of Chairman Bill Thomas, CEO Eric Updyke, and CFO Paula Bell, Spirent specializes in automated test and assurance solutions for networks, cybersecurity, and positioning. Its product lines include lifecycle service assurance for 5G mobile networks and cellular devices, as well as network testing and security solutions. In 2022, Spirent reported revenue of $607.5 million, operating income of $129.5 million, and net income of $99.9 million . Over the years, major acquisitions by Spirent have included Consultronics, Netcom Systems, Adtech, Zarak Systems, Caw Networks, Hekimian, Telecom Analysis Systems, Global Simuation Systems, DLS, and Imperfect Networks.
- Viavi Solutions, formerly part of JDS Uniphase Corporation, is an American network test, measurement, and assurance technology company based in Chandler, Arizona. It traces its origins to 1923, when Wandel & Goltermann began to manufacture test sets for communications.
- In 2000, the world’s 2nd and 3rd largest T&M companies merged to form ACTERNA. In 2005, ACTERNA merged with JDS Uniphase to form JDSU. The Agilent Network Solutions Division was later merged into the company, and in 2017, Viavi was spun out of JDSU. Additional acquisitions have included RPC Photonics, Cobham, 3Z Telecom, Expandium, Contest and others.