IT provider Viavi Solutions was linked with making another approach for peer Spirent Communications, after its initial proposal was ditched in favour of a rival bid by Keysight Technologies.

Reuters sources claim Viavi is waiting in the wings should Keysight’s takeover of Spirent, worth more than £1.1 billion and agreed in March, collapse on regulatory grounds.

The outlet reported doubts have emerged about the deal going through because Spirent’s shares are trading significantly lower than what Keysight has agreed to pay. Unnamed analysts state this could reflect concerns about the deal being approved by competition regulators.

Spirent initially accepted Viavi’s £1 billion bid for the business, before opting to accept a Keysight offer described as a “superior proposition”.

Should Viavi launch another bid, it would need the green light from UK regulators as rules in the country require a 12-month gap between offers.

Keysight has stated a tie-up with Spirent will allow it to launch a broader product offering, and it has set a timeline of before the end of April 2025 for the deal to be approved. Both companies have stated they are working with US and European authorities to get the nod.

Viavi has argued that in comparison to Keysight, it has “limited business overlap with Spirent”.

Keysight offers testing services and counts mobile operators, automotive companies and other technology players as customers. Spirent sell various products and solutions in the test and measurement segment.