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Spirent targeted in US takeover as earnings slide

This is the latest in a succession of US M&A approaches
March 5, 2024
  • Order intake slows
  • A 61 per cent bid premium

The market capitalisation of Spirent Communications (SPT) eclipsed the £1bn mark after the network testing provider revealed that it had agreed to a takeover bid from Nasdaq-traded communications equipment firm Viavi Solutions Inc (US:VIAV). Viavi pitched the offer at 172.5p per share in cash, a 61 per cent premium to Spirent’s closing price on the last trading day prior to the offer. The deal also includes a special dividend of 2.5p per Spirent share, in lieu of any final dividend for 2023. There is significant overlap between the two businesses, and the proposed tie-up is expected to drive the combined group’s product development in artificial intelligence and machine learning.

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