VIAVI Solutions closed its acquisition of Spirent Communications’ High-Speed Ethernet (HSE), Network Security, and Channel Emulation (CE) testing business from Keysight Technologies for $425 million in cash. The deal strengthens VIAVI’s position in high-performance network validation and expands its test portfolio across Ethernet, application performance, and AI-driven digital infrastructure markets.
The newly integrated business is expected to contribute approximately $180 million in revenue to VIAVI’s Network Service Enablement segment within the first year and become accretive to non-GAAP earnings within 12 months. VIAVI financed the transaction partly through a new $600 million senior secured term loan arranged by Wells Fargo Bank. The company plans to apply its U.S. net operating losses to reduce its effective tax rate across the combined group.
By incorporating Spirent’s advanced network and channel emulation technologies, VIAVI now offers a more comprehensive suite of solutions addressing the needs of hyperscale, telecom, and enterprise customers transitioning to high-speed Ethernet and AI-optimized infrastructure. Advisors included Qatalyst Partners and Fried, Frank, Harris, Shriver & Jacobson for VIAVI, with Gibson Dunn & Crutcher advising on the credit facility.
“Integrating Spirent’s HSE and security testing capabilities enables VIAVI to serve a broader set of customers and accelerate innovation across critical performance domains,” said a VIAVI spokesperson.
🌐 Analysis: This acquisition further consolidates the network testing market following Keysight’s divestiture of Spirent assets. It positions VIAVI to compete more directly with Keysight, Rohde & Schwarz, and Anritsu in high-speed Ethernet and cybersecurity validation—key segments as AI data centers and telecoms upgrade to 800G and 1.6T infrastructure. VIAVI’s financing structure signals confidence in near-term growth as testing demand surges alongside AI and cloud-scale interconnect deployments.
• Transaction value: $425 million (all cash)
• Expected annual revenue contribution: $180 million
• Expected EPS accretion: within 12 months
• Term loan: $600 million, 7-year maturity (Wells Fargo lead)
• Financial advisors: Qatalyst Partners; legal counsel: Fried Frank, Gibson Dunn
• Portfolio expansion: high-speed Ethernet, network security, channel emulation testing
