Viavi Solutions Acquires Spirent's Testing Business

By Philip Seaworth • Friday, October 17 06:12 • Permanent Link

Viavi Solutions Inc. has successfully completed the acquisition of Spirent Communications Plc’s high-speed ethernet, network security, and channel emulation testing business for an all-cash consideration of $425 million. The acquisition is expected to bolster Viavi's network service enablement ("NSE") revenue by approximately $180 million within the first 12 months post-closing. Additionally, Viavi anticipates that the acquisition will become accretive to the company's non-GAAP EPS within 12 months after closing.

To finance a portion of the acquisition and related expenses, as well as for general corporate purposes, 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, borrowed in full at closing and maturing seven years from closing.

Viavi's acquisition of Spirent Communications Plc's high-speed ethernet, network security, and channel emulation testing business is anticipated to allow Viavi to offer new solutions in high-speed ethernet, network security, and channel emulation testing, as well as to provide a complementary and synergistic product portfolio across ethernet, application performance, security, AI, and digital infrastructure verticals.

In terms of financial and legal advisory, Qatalyst Partners acted as the financial advisor to Viavi, while Fried, Frank, Harris, Shriver & Jacobson and Gibson Dunn & Crutcher LLP provided legal counsel on the acquisition and the credit facility, respectively.

Viavi Solutions Inc., trading on the NASDAQ under the symbol "VIAV," is a global provider of network test, monitoring, and assurance solutions for various industries, including telecommunications, cloud, enterprises, first responders, military, aerospace, and railway. Additionally, Viavi is a leader in light management technologies for a wide range of applications. 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.

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