Viavi says PNT testing pioneer has complimentary technology
Arizona-based Viavi VIAV 0.00%↑ has agreed to acquire testing and measurement Spirent Communications for $1.3 billion in deal that allows the company to gain a market leader in positioning, navigation and timing (PNT) technologies.
United Kingdom-based Spirent provides solutions and services that test such technologies as 5G, software-defined wide area networks (SD-WAN), cloud and autonomous vehicles. Spirent’s global reach in its PNT business also aids in customer research and development, verification and integrity testing, including hybrid positioning and sensor fusion, the company said.
“Combining with VIAVI brings together a highly complementary product offering which can be marketed globally,” said Eric Updyke, Spirent CEO, in a statement. “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 acquisition comes as Spirent reported revenues that were down 22 percent year-over-year to $474 million. The company also said that orders were down 24 percent—compared to the previous year.
Under the terms of the deal, Spirent shareholders will receive 172.5 pence per share in cash. Shareholders will also receive a special dividend of 2.5 pence per share in lieu of a final dividend for the year that ended Dec. 31, 2023, the company said.
The acquisition, expected to close during the second half of 2024, will be funded by VIAVI’s existing cash, an $800 million 7-year term loan from Wells Fargo Bank and a $400 million investment from private equity group Silver Lake, the company said. Ken Hao, chairman and a managing partner of Silver Lake, will join Viavi’s board.
Spirent, a pioneer in PNT testing, last year launched its SimXona satellite constellation simulator, which was certified by Xona Space Systems. Xona is developing PULSAR, a commercial PNT service built on a backbone of low- Earth orbit (LEO) small satellites, the company said.
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