Spirent Communications Shares Soared 59.5% on £1Bn Takeover

The Spirent Communications Plc (LON: SPT) share price soared 59.5% after announcing that the leadership teams of Viavi, Bidco, and Spirent are delighted to declare that they have agreed on the terms for a recommended all-cash transaction to acquire all the issued and forthcoming ordinary shares of Spirent by Bidco.

The acquisition is planned to be executed via a scheme of arrangement as outlined in Part 26 of the Companies Act. As part of the acquisition agreement, each holder of Spirent shares will receive 175 pence per share of Spirent owned, broken down into 172.5 pence in cash and a special dividend payout of 2.5 pence per share. 

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The Acquisition Value marks a significant premium over past share prices. Based on the Acquisition Price, the total value of the acquisition is approximately £1,005 million on a fully diluted basis. Silver Lake will invest US$400 million in Viavi in conjunction with this acquisition.

It has been agreed by the boards of Viavi, Bidco, and Spirent that the Permitted Dividend will be declared and paid as part of the acquisition process. This dividend is expected to be announced by Spirent’s board before the transaction’s effective date and will be contingent upon the scheme’s completion. 

After receiving financial advice from Rothschild & Co. and UBS regarding the terms of the acquisition, the Spirent board believes the offer is fair and reasonable. Rothschild & Co and UBS have considered the Spirent directors’ commercial evaluations in providing this independent financial advice.

Consequently, the Spirent board unanimously recommends that shareholders vote in favour of the scheme at the upcoming court meeting and special resolution(s) at the general meeting, with all directors committing their shareholdings supporting this recommendation.

The Viavi Group is recognised globally for its communications test, measurement, and optical technologies expertise. Viavi has been monitoring Spirent for several years, admiring its strategic direction and management’s ability to create a diversified and globally positioned business. 

Viavi sees Spirent as a source of complementary products and services that meet the evolving needs of new technology landscapes.

Viavi and Bidco appreciate the cultural alignment and shared vision between the two organisations, aiming to foster an environment where employees are encouraged to grow professionally.

Spirent Communications (SPT) share price. 

The Spirent Communications (SPT) share price soared 59.50% to trade at 174.25p from Monday’s closing price of 109.25p.