Spirent Communications (LSE:SPT) has accepted a takeover bid from US electronics group Keysight Technologies Inc (NYSE:KEYS), beating out a previous offer from Viavi Solutions (NASDAQ:VIAV) by a 26.5p per share.
Keysight is prepared to pony up 201.5p per share, representing a roughly 14% premium to Wednesday's closing price.
Keysight, which specialises in electronic test equipment and is valued at $27 billion (£21.4 billion) on the New York Stock Exchange, signalled its intent overnight.
“The Spirent directors consider that the acquisition represents a superior proposition for Spirent shareholders relative to the Viavi offer,” the UK group said in a statement.
“Accordingly, the Spirent directors have unanimously withdrawn their recommendation of the Viavi offer and intend to adjourn the Viavi offer shareholder meetings.
Spirent's shares jumped 10.6% to 198p in early trading on Thursday.
Chairman Bill Thomas said: "Spirent is a business with many strengths, deep customer relationships and talented people. This offer provides our shareholders with even greater value in cash for their shares at an attractive premium while at the same time protecting the fundamental character of Spirent for all stakeholders.”