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Highlights
Keysight has entered a consent decree with the US Department of Justice regarding its acquisition of Spirent Communications
The agreement marks progress in Keysight’s plan to finalise the Spirent deal following an earlier delay
Spirent had previously accepted a competing offer before agreeing to Keysight’s proposal, including a business divestment
Keysight Technologies Inc (NYSE:KEYS), a global provider of electronic design and test solutions, has announced a significant development in its planned acquisition of Spirent Communications PLC (LSE:SPT), a communications testing firm listed on the FTSE 250 index. This advancement aligns with broader moves in the testing and measurement sector, which includes firms under the umbrella of FTSE 100 companies.
Consent Decree Signals US Regulatory Progress
Keysight reported it had entered into a consent decree with the United States Department of Justice regarding its proposal to acquire Spirent. The consent decree is part of the formal regulatory process and involves the filing of a settlement proposal. The development follows a prior delay in the completion date of the deal, which was extended due to the Department’s ongoing review.
The decree includes provisions such as an asset preservation and hold separate stipulation and order, indicating that conditions have been met for regulatory clearance. This step marks a notable movement toward final approval of the acquisition, a deal originally announced following Spirent’s acceptance of an earlier competing offer.
Business Divestment Supports Clearance Path
As part of the agreement structure, Keysight’s proposal incorporates the divestment of Spirent’s channel emulation business. That unit is set to be transferred to Viavi Solutions Inc (NASDAQ:VIAV), a network testing firm headquartered in the United States. This was incorporated into the transaction framework as part of an approach to satisfy antitrust and competitive concerns raised during the review.
Viavi had submitted an earlier offer for Spirent, which the latter initially accepted. However, Keysight’s subsequent proposal included terms seen as more aligned with strategic objectives, including the business divestment.
Next Steps in Merger Proceedings
With the consent decree filed and the asset preservation order in place, Keysight and Viavi are expected to finalise an amendment agreement. The announcement of this amendment is expected in close alignment with the timing of the decree, according to the latest update from Keysight.
The transaction represents an ongoing reshaping of the test and assurance solutions segment, with companies in the sector navigating antitrust scrutiny and aligning strategic assets to streamline approvals. Spirent’s operations, primarily focused on network performance and service assurance, are regarded as complementary to Keysight’s broader portfolio in electronic test equipment.
Spirent remains listed on the London Stock Exchange under the ticker LSE:SPT and operates in a segment closely linked with digital infrastructure and communication networks. The agreement with Keysight marks a continuation of mergers and acquisitions activity affecting both the FTSE 250 and, in a broader industry sense, FTSE 100 companies.
Sector Continues Realignment with Regulatory Input
The progression of this transaction comes amid ongoing oversight by global regulatory authorities over consolidation in the communications testing industry. With multiple players involved, including those listed on key indexes such as the NYSE, LSE, and NASDAQ, the deal illustrates the level of scrutiny applied when firms seek to expand their technological and market reach.
As developments unfold, updates from involved entities will define the final timeline for transaction completion. Keysight’s positioning on the NYSE and Spirent’s role within the FTSE 250 maintain the profile of this acquisition within global capital markets.
