Wireless testing technology specialist Anite (LON:AIE) has agreed to be bought for £322mln by US testing equipment expert Keysight Technologies (NYSE:KEYS).
Keysight will pay 126p per Anite share, a 22% premium to Tuesday’s closing price and a 40% premium to the three month average share price.
Keysight, which is a spin-off from Agilent, is a much larger rival US supplier of test and measurement equipment.
Clay Brendish, chairman of Anite, said: “The combination of Anite and Keysight has strong strategic logic, with Anite's software expertise strongly complementing Keysight's hardware expertise.
“The offer will enable shareholders to crystallise a cash value for their shares at a meaningful premium to recent average prices, and enhances the opportunities for our customers and employees.”
Anite has struggled for the past two years after customers Blackberry, Nokia and Motorola all cancelled numerous orders for testing equipment due to cost-cutting measures.
Broker Finncap said: “We feel this is a good deal for Anite. It is sad to see a UK mobile industry leader lost to US rivals; however, with current headwinds we feel Anite is unlikely to return to the position it enjoyed in 2013, when as a high growth ‘darling of the market’, shares traded between 140p and 160p.”
Anite, which has a market cap of £310mln, will combine with Keysight which has a US$5.5bn (£3.5bn) market cap, to create a global leader in wireless testing.
Ron Nersesian, president and chief executive of Keysight, said: “The combination of Keysight and Anite - two global leaders with complementary strengths - enables us to offer a broad portfolio of leading-edge solutions throughout the wireless research and development cycle.”
The board are recommending the offer be accepted by shareholders, and Anite’s two main shareholders, RWC Focus Asset Management and Aberforth Partners, which own a combined 14.2% stake in the company, have already backed the move.
Over the last five years, Anite shares have tripled and today they led the risers, climbing 24% to 127p on the news.