The U.S. Department of Justice announced today that Keysight Technologies must divest key business units of Spirent Communications to move forward with its proposed $1.5 billion acquisition. The divestiture package includes Spirent’s high-speed Ethernet testing, network security testing, and RF channel emulation businesses—representing roughly 40% of Spirent’s revenue.
The DOJ filed a civil antitrust lawsuit to block the merger, citing concerns that the deal would harm competition in specialized communications test equipment markets where Keysight and Spirent are close rivals. At the same time, the agency filed a proposed settlement that would allow the merger to proceed if approved by the court.
The assets will be sold to Viavi Solutions, a competitor in the sector, which is expected to hire key Spirent personnel to support the transition.
The settlement is subject to a 60-day public comment period under the Tunney Act before final court approval.
