Keysight Progresses Acquisition of Spirent with Regulatory Clearances
Why we think this is good
The RNS provides a positive update on the progress of Keysight's acquisition of Spirent, with the key regulatory clearance from the UK Competition and Markets Authority obtained. This reduces the execution risk and uncertainty around the deal, which is a strategic move for Keysight to expand its capabilities and market reach. However, the financial details and impact of the acquisition are not quantified, which introduces some uncertainty.
Key Points
- UK Competition and Markets Authority has unconditionally cleared the acquisition
- Keysight and Spirent are working together to obtain the remaining regulatory approvals
- Acquisition expected to complete in Q3 of Keysight's current fiscal year
Summary
Keysight Technologies, Inc. (NYSE: KEYS) has provided a further update on its recommended cash acquisition of Spirent Communications PLC. The UK Competition and Markets Authority has unconditionally cleared the acquisition, satisfying one of the key conditions. Keysight remains committed to working with Spirent to obtain the remaining regulatory approvals, with the aim of completing the acquisition during the third quarter of Keysight's current fiscal year. The precise timing is subject to when the pending regulatory clearances are obtained.