The all-cash bid for the UK’s Anite fits with Keysight’s strategy to grab more test and measurement business in the mobile industry.
Keysight, a US firm that produces test and measurement equipment and software, announced a recommended cash acquisition by Keysight Netherlands, its wholly owned indirect subsidiary, to acquire the entire issued and to-be-issued ordinary share capital of Anite. The deal values the UK vendor at £388 million (US$606 million).
The acquisition has been unanimously recommended by the board of directors of Anite.
The UK firm’s software supports the design and validation of chipsets, mobile devices and network equipment. Customers include manufacturers of devices, chipsets and network equipment, as well as operators, regulators and independent test houses.
“This will help us to expand our portfolio into the software layer for design and validation, and expand Keysight’s position as a supplier for wireless design and validation tools,” explained the US firm’s CEO Ron Nersesian (pictured).
It also looks like an opportune time to approach Anite, which has faced knock-on pressure from struggling customers. Blackberry, Nokia and Motorola Solutions have all cancelled orders, according to a note from finnCap analyst Lorne Daniel. His comments were reported by Reuters.
Keysight expects the deal to be accretive to adjusted earnings in the first year after completion and generate 15 per cent return on invested capital (ROIC) within five years.
The transaction is subject to a number of conditions, including regulatory approvals and the approval of Anite’s shareholders. Subject to the satisfaction of the conditions, the transaction is expected to close by the end of October 2015.