The £1.1 billion acquisition of British tech firm Spirent by California’s Keysight Technologies has been given the go-ahead by the Competition and Markets Authority (CMA), marking a significant step forward for the London-listed company. The unconditional approval from the UK regulator paves the way for the deal to proceed, despite earlier turbulence in the takeover saga.
Spirent, headquartered in Crawley, Sussex, first agreed to the Keysight offer in March, though Reuters reported that the deal faced uncertainty as the firm’s shares traded well below the bid price. Nevertheless, the CMA’s decision has bolstered confidence in the transaction, which now awaits clearance from authorities in the US and China.
Spirent, under the leadership of CEO Eric Updyke, anticipates the takeover will be finalised before the end of July, bringing an end to months of speculation for the company, a fixture on the London Stock Exchange for over three decades.
Employing more than 1,500 staff across 11 global offices, Spirent serves around 1,100 customers in over 50 countries. The firm specialises in products, services and managed solutions tackling testing, assurance and automation challenges for cutting-edge technologies like 5G, software-defined wide area networks, cloud systems and autonomous vehicles. Its Sussex base has long been a hub of innovation and this deal underscores the UK’s role in the global tech landscape.
The path to this point has been anything but straightforward. Last year, Spirent accepted a £1 billion bid from Arizona-based Viavi, a Nasdaq-listed firm, only to pivot to Keysight’s offer, which it deemed a “superior proposition”. This shift came despite a challenging financial year, with Spirent reporting an 80% plunge in pre-tax profits to £18 million, down from £90.4 million in 2022, and revenues dropping to £374 million from £479 million the previous year.
In a related twist, Viavi has since struck a £335 million deal to snap up two of Spirent’s business arms – focused on high-speed ethernet and network security – once the Keysight acquisition is complete. “The parties said the transaction provides a complementary addition to Viavi’s ethernet testing platform,” a statement confirmed, highlighting the strategic fit for the US firm.
For Spirent, the Keysight takeover promises to bolster its global reach while keeping its Sussex roots in the spotlight. With the CMA’s blessing secured, attention now turns to international regulators as this British tech stalwart prepares for its next chapter.
Image source: LinkedIn (Eric Updyke, CEO, Spirent)
