VIAVI Solutions to acquire Spirent Communications

VIAVI Solutions will acquire Spirent Communications for $1.27 billion. According to VIAVI, the acquisition aims to boost its position as a premier provider for research labs, service providers, data centers and mission-critical infrastructures worldwide.

The merger aims to integrate VIAVI and Spirent’s complementary product portfolios and services and to offer a broad spectrum of solutions across various markets and applications.

This collaboration is expected to meet the demands of high-growth sectors such as cloud service providers, enterprise/IT networks, and emerging 5G and 6G technologies, as well as positioning, navigation and timing (PNT) verticals.

As a result of the acquisition, VIAVI aims to accelerate technology development and product innovation, particularly in areas such as artificial intelligence, machine learning, security, cloud-native architecture and automation. By using both companies’ joint engineering, research, and development expertise, VIAVI intends to foster innovation, enhance operational efficiency and generate substantial cost synergies.

The partnership is expected to yield annual run-rate cost synergies of up to $75 million within two years post-acquisition.

This acquisition aims to bolster VIAVI’s position as a global provider of test, assurance and security solutions. Moving forward, the focus will be on delivering high-performance, integrated solutions that ensure reliability, efficiency and security across critical network infrastructures and digital ecosystems, VIAVI said.