Spirent Communications (LSE:SPT) has agreed to be bought out by Viavi Solutions (NASDAQ:VIAV) in an all-cash deal priced at 175p per share.
The offer places a £1 billion valuation on London-listed communications technology group Spirent, representing a 61.4% premium to Monday’s closing price.
Sirent’s board members have unanimously recommended the offer, which is expected to close in the second half of 2024, as “fair and reasonable”.
Spirent’s chairman Sir Bill Thomas said: "Spirent is a business with a differentiated value proposition, diversified portfolio of technology solutions, deep customer relationships and talented people.
“Despite these strengths, we recognise that the Spirent Group has been operating against an increasingly challenging market backdrop.”
These challenges were laid bare in Spirent’s full-year results published today.
Revenues in 2023 fell by a fifth year on year, with profit before tax crashing 80% to US$18.4 million (£14.5 million). The group issued a profit warning last October.
Commenting on the acquisition, Oleg Khaykin, president and chief executive of Viavi, said: "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.
Private equity group Silver Lake has committed US$400 million to Viavi in connection with the acquisition.