Keysight Technologies moves forward with Spirent Communications acquisition amid regulatory hurdles

In the United Kingdom, Keysight Technologies, an S&P 500 company, is in the process of acquiring Spirent Communications, a major player in network testing and assurance solutions. On March 28, 2024, the boards of both companies announced their agreement for an all-cash acquisition. Spirent's shareholders endorsed the acquisition on May 22, 2024, leading to the initiation of a Court-sanctioned scheme under the Companies Act 2006. To comply with regulatory requirements, Keysight is planning to divest Spirent's high-speed ethernet and network security business lines and has begun an auction process aiming for completion parallel to the acquisition. Keysight has been actively engaging with the State Administration for Market Regulation in China (SAMR) to secure clearance, and as of November 25, 2024, they filed for this approval under the Anti-Monopoly Law. Additionally, the acquisition received conditional authorizations from the French Ministry for Economic Affairs and has been approved by Germany's Federal Ministry for Economic Affairs and the UK's Chancellor under the National Security and Investment Act 2021, fulfilling several conditions in the Scheme Document. The acquisition's closing is contingent on satisfying remaining regulatory conditions and obtaining court sanction, with an expected completion timeline during the first half of Keysight's fiscal year ending April 30, 2025. As the situation unfolds, both Keysight and Spirent remain committed to addressing these regulatory processes while keeping a close eye on the evolving timetable for the acquisition’s finalization.