Here’s what you need to know about Viavi’s blockbuster $1.3 billion communications and telecommunications deal with Spirent Communications.
IT and communications company Viavi Solutions plans to acquire telecommunications testing specialist Spirent Communications for approximately $1.3 billion to accelerate innovation in artificial intelligence, 5G and cloud-native.
As part of its planned acquisition of Viavi, private equity giant Silver Lake announced it will invest $400 million in the Chandler, Arizona-based company.
Viavi CEO Oleg Kaikin said the combination of the two companies’ communications and testing technologies will strengthen the company’s products and applications and accelerate growth in new markets.
“We unite our two teams with a shared passion for developing compelling, cutting-edge products for our customers and a commitment to technical excellence,” Khaykin said in a statement.
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Viavi’s revenue for fiscal 2023 was $1.1 billion, down approximately 14% from the prior year.
Viavi is a global provider of network testing, monitoring, and assurance services for communications, cloud, aerospace, emergency personnel, and other industries. Spirent offers products that address testing, assurance, and automation challenges for technologies such as 5G, SD-WAN, cloud, and autonomous vehicles.
Viavi Acquisition to Advance AI and 5G Innovation
Viavi’s goal of acquiring Spirent is to strengthen its engineering, research and development, and design capabilities and accelerate new products and product innovation, particularly around AI and machine learning, security, cloud-native architecture, and automation.
Spirent CEO Eric Updyke said in a statement: “The integration with Viavi enables us to have a highly complementary product offering that can be sold around the world.”
This acquisition will enable the combined team to bring innovative products to market across high-growth cloud service providers, enterprise/IT networks, 5G private networks, 6G+, positioning, navigation and timing.
“This will enable Spirent to build on the strategic progress we have made to date with partners who have the scale and resources to take advantage of the long-term growth opportunities ahead,” Updike said. Stated.
The company expects to generate up to $75 million in annual cost synergies two years after closing due to improved operational efficiencies.
