In a shocking move, the Justice Department’s Antitrust Division has announced that Keysight Technologies Inc. must divest Spirent Communications plc’s high-speed ethernet testing, network security testing, and RF channel emulation businesses to resolve antitrust concerns arising from their proposed $1.5 billion merger.
According to the Antitrust Division, Keysight and Spirent dominate the markets in the United States for high-speed ethernet testing, network security testing, and RF channel emulators. High-tech companies – including chipset manufacturers, cloud computing providers, mobile network operators, government labs, and large enterprises – rely on the Defendants’ products to validate that their networks and network equipment are functional, secure, and integrating the latest technology.
Assistant Attorney General Abigail Slater of the Antitrust Division stated, ‘This structural solution preserves competition for key testing equipment used to ensure that data moves quickly and securely across the world. The proposed divestiture to Viavi, an established and innovative test and measurement company, ensures that American consumers and businesses will continue to benefit from competition that promotes innovation, and which allows American companies to maintain global leadership.’
The proposed settlement requires Keysight to divest Spirent’s high-speed ethernet testing, network security testing, and RF channel emulation businesses to Viavi, including all tangible and intangible assets necessary to produce and sell these products. Together, these three business lines account for about 40% of Spirent’s total revenues. Viavi is expected to hire certain key Spirent employees that today support the divested business lines.
Keysight is an American company incorporated in Delaware with its principal office in Santa Rosa, California. Keysight offers design, emulation, and test solutions across a range of industries, including commercial communications; aerospace, defense, and government; and electronic industrial. In 2024, Keysight had global revenue of approximately $4.97 billion.
Spirent is a global company incorporated in the United Kingdom with its principal office in Crawley, England. Spirent offers automated test and assurance solutions for networks, cybersecurity, and satellite positioning. In 2024, Spirent had global revenue of approximately $460.2 million.
Public Comment Period Open
As required by the Tunney Act, the proposed settlement, along with the Department’s competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement within 60 days of its publication to Jared Hughes, Assistant Chief, Media, Entertainment, and Communications Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street, NW, Suite 7000, Washington, D.C. 20530 or via email at ATR.MEC.Information@usdoj.gov.
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Key Facts
- State: Federal
- Category: Antitrust Violation
- Source: DOJ Press Release â†â€â€
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