Viavi to acquire Spirent Communications’ high-speed ethernet and network security business in $410m deal

Viavi Solutions Inc. has entered into a definitive agreement to acquire the high-speed ethernet and network security business of Spirent Communications plc from Keysight Technologies, Inc. The deal, valued at $410 million in base cash consideration with an additional $15 million in contingent cash, is subject to regulatory approvals and is expected to close in the second quarter of 2025, following the completion of Keysight’s acquisition of Spirent.

This acquisition is set to expand Viavi’s capabilities in network security solutions, ethernet testing technology, and digital infrastructure services. By integrating Spirent’s advanced ethernet and security testing portfolio, Viavi aims to strengthen its foothold in enterprise network validation, cloud infrastructure performance, and service provider security—sectors that are witnessing growing demand amid increasing cybersecurity challenges and digital transformation.

Strengthening ethernet testing and network security with advanced technology

The acquisition marks a significant expansion of Viavi’s ethernet testing platform, adding high-performance solutions for network security solutions, cloud infrastructure performance, and service provider security. As businesses continue to prioritise cybersecurity and network resilience, demand for ethernet testing technology has surged, with enterprises seeking comprehensive solutions that ensure network reliability, scalability, and security.

By acquiring Spirent’s high-speed ethernet and security business, Viavi gains an immediate infusion of software, hardware, and protocol expertise across multiple network layers. This is expected to enhance its ability to address the evolving requirements of enterprise network validation, cloud infrastructure performance, and service provider security. The integration of Spirent’s technology is anticipated to elevate Viavi’s offerings in network security solutions, particularly in the areas of encryption testing, firewall validation, and threat simulation for enterprise networks.

With the growing complexity of network environments, enterprises, service providers, and government agencies are increasingly turning to ethernet testing technology to validate the performance and security of their digital infrastructure. The acquisition positions Viavi as a stronger player in this competitive landscape, enabling the company to cater to high-demand industries that rely on robust network security solutions and enterprise network validation.

Revenue growth and financial outlook following the acquisition

Viavi expects the acquisition to contribute approximately $180 million in additional revenue within the first 12 months post-closing. The deal is anticipated to be accretive to earnings per share (EPS) within the first year, with Viavi leveraging U.S. net operating losses to optimise its tax position. This financial strategy is designed to enhance profitability while ensuring a smooth integration of the newly acquired business.

To fund the acquisition, Viavi has secured a $425 million Term Loan B from Wells Fargo. The company may also elect to increase the loan amount for general corporate purposes, depending on market conditions. This financing structure reflects Viavi’s confidence in the acquisition’s long-term value and its ability to generate sustainable revenue growth.

Industry impact: Meeting rising demand for ethernet testing and security solutions

The transaction comes at a time when the demand for network security solutions and ethernet testing technology is accelerating. The rapid expansion of cloud computing, data centres, and 5G infrastructure has intensified the need for advanced cloud infrastructure performance and enterprise network validation solutions.

Organisations across industries are investing heavily in service provider security, focusing on encryption, authentication, and network intrusion detection to counter evolving cyber threats. The integration of Spirent’s technology into Viavi’s portfolio is expected to provide customers with enhanced tools for securing enterprise networks, assessing cloud performance, and validating high-speed ethernet environments.

As digital transformation accelerates, businesses are prioritising ethernet testing technology to ensure seamless connectivity and data integrity. The acquisition reinforces Viavi’s position as a key player in this domain, offering solutions that support cloud infrastructure performance, enterprise network validation, and service provider security in an increasingly complex digital landscape.

Regulatory approvals and closing timeline

The transaction remains subject to regulatory approvals and customary closing conditions. Viavi expects the acquisition to be finalised in the second quarter of 2025, shortly after Keysight completes its purchase of Spirent. The closing process will involve regulatory review to ensure compliance with industry standards and competitive market practices.

Once completed, the acquisition will bring immediate synergies to Viavi’s ethernet and security testing business, strengthening its ability to serve enterprise customers, cloud service providers, and government agencies. The integration of Spirent’s technology is expected to accelerate innovation within Viavi’s portfolio, enhancing its position in network security solutions, ethernet testing technology, and digital infrastructure services.

Positioning for long-term growth in network testing and security

Viavi’s acquisition of Spirent’s high-speed ethernet and network security business aligns with its long-term strategy to expand its footprint in enterprise network validation, cloud infrastructure performance, and service provider security. As demand for advanced ethernet testing technology continues to rise, the company is well-positioned to capitalise on emerging opportunities in network security and digital infrastructure.

By integrating Spirent’s expertise into its existing operations, Viavi is set to provide industry-leading solutions that address the evolving needs of businesses, service providers, and government entities. The acquisition reinforces Viavi’s commitment to delivering cutting-edge network security solutions that enhance reliability, performance, and security in an increasingly interconnected world.

With this strategic move, Viavi is poised to play a pivotal role in shaping the future of ethernet testing technology, ensuring that enterprises and service providers have the tools needed to navigate the challenges of modern digital networks.