In major news on UK stocks, Spirent Communications PLC (GB:SPT) shares rallied after U.S.-based Keysight Technologies, Inc. (NYSE:KEYS) agreed to buy the company, beating the previous offer from rival Viavi Solutions (NASDAQ:VIAV). The U.S.-based electronic test equipment maker Keysight proposed a bid for 201.5p for each Spirent share, valuing the company at £1.16 billion. Keysight’s offer exceeded Viavi’s previous offer by 15%, prompting Spirent to retract its prior agreement.
Spirent shares gained over 12% as of writing. SPT stock has gained a phenomenal 90% over the past month, driven by Viavi’s takeover offer, made earlier this month.
Spirent Communications is a global provider of testing solutions and technology services, serving various industries including automotive, government, finance, healthcare, and more.
More on the Spirent-Keysight Deal
As per the new offer, the price of 201.5p includes 199p in cash along with a special dividend of 2.5p instead of the final dividend for 2023. The offer price reflects a premium of 85.9% over Spirent’s closing price on March 4, 2024, a day before Viavi made its offer.
Keysight recognizes synergies between both companies, highlighting their complementary products in addressing intricate engineering challenges. With the acquisition, Spirent will benefit from more long-term client connections, enhanced industry expertise, and expanded global scale. The acquisition will also enhance its ability to handle more complex consumer needs through combined resources and an extensive product range.
Keysight further anticipates that Spirent’s acquisition will give access to a new serviceable market worth up to $1.5 billion.
What is the Target Price for Spirent?
As per the consensus among analysts on TipRanks, SPT stock has been assigned a Moderate Buy rating. The company’s ratings consist of two Buys and one Hold recommendation. The Spirent share price target is 192.83p, which is around 4.3% below the current share price.
