By Jonathan Stempel (Reuters) -The U.S. government will require Keysight Technologies to divest three of Spirent Communications' businesses to resolve antitrust concerns before it buys the British
US Mandates Keysight to Sell Assets Before Spirent Acquisition
By Jonathan Stempel
(Reuters) -The U.S. government will require Keysight Technologies to divest three of Spirent Communications' businesses to resolve antitrust concerns before it buys the British company, a purchase originally valued at $1.5 billion.
In filings on Monday in the Washington, D.C., federal court, the U.S. Department of Justice said the divested assets include Spirent's high-speed ethernet testing, network security testing, and radio frequency channel emulation businesses.
Keysight said in March it planned to sell those businesses to Viavi Solutions, once known as JDS Uniphase, for as much as $425 million in cash.
The Justice Department said Keysight and Spirent together account for 85% of the high-speed ethernet testing market, more than 60% of the network security market, and more than 50% of radio frequency channel emulation.
It said a merger without the divestitures might substantially lessen competition and harm customers.
Keysight and Spirent did not immediately respond to requests for comment.
Based in Santa Rosa, California, Keysight agreed in March 2024 to buy Crawley, U.K.-based Spirent for 1.16 billion British pounds, now about $1.57 billion.
Viavi had agreed earlier that month to buy Spirent, but was outbid by Keysight.
($1 = 0.74 pounds)
(Reporting by Jonathan Stempel in New York; Editing by Lisa Shumaker)
