Viavi Solutions Inc. has just completed the acquisition of Spirent Communications plc’s high-speed ethernet, network security, and channel emulation testing business. The all-cash consideration for this acquisition was $425 million, subject to certain customary closing adjustments.
The acquisition is expected to add approximately $180 million to Viavi’s network service enablement (“NSE”) revenue in the first 12 months after closing. In addition, the transaction is anticipated to be accretive to non-GAAP EPS 12 months after closing. Viavi also expects to utilize its U.S. net operating losses to lower the combined group’s blended non-GAAP tax rate.
To finance a portion of the acquisition and related expenses, Viavi entered into a term loan credit agreement with Wells Fargo Bank, National Association and certain other lenders. The credit agreement provides for a senior secured term loan of $600 million, which was borrowed in full at closing and is set to mature seven years from closing.
Viavi Solutions Inc. (NASDAQ: VIAV) is a global provider of network test, monitoring, and assurance solutions for telecommunications, cloud, enterprises, first responders, military, aerospace, and railway. The company is also a leader in light management technologies for various applications such as 3D sensing, anti-counterfeiting, consumer electronics, industrial, automotive, government, and aerospace.
Qatalyst Partners acted as the financial advisor to Viavi, while Fried, Frank, Harris, Shriver & Jacobson served as legal counsel on the acquisition. Gibson Dunn & Crutcher LLP advised as legal counsel on the credit facility. Today the company's shares have moved 1.8% to a price of $13.01. If you want to know more, read the company's complete 8-K report here.
