$1.6 billion merger takes Ixia to Keysight

January 30, 2017 // By Julien Happich
Test & Measurement specialist Keysight Technologies is to acquire Ixia in an all-cash transaction totaling approximately $1.6 billion. The transaction expected to close no later than the end of October 2017 will see Ixia shareholders receive $19.65 per share in cash.

“The proposed acquisition of Ixia is in direct alignment with our strategy to transform Keysight for growth and is 100 percent complementary to our business,” said Ron Nersesian, Keysight president and CEO in a statement.

“The combination creates a powerful innovation engine to fuel growth, expands our software-centric solutions and builds new opportunities through sales and technology leverage. Ixia also brings a world-class level of talent, and together, we will provide leading-edge solutions that address the fastest-growing communications and networking trends including 5G, IoT, visibility, security and application performance.”

The combined company will serve over 100 countries around the world, and Keysight’s worldwide go-to-market strength and sales channel will give Ixia access to previously untapped non-US NEMs, particularly in Asia. The merger acquisition is expected to save the combined company an estimated $60 million annual cost synergies, of which $50 million is expected to be achieved within 24 months.

Revenue synergies are expected to be in excess of $50 million by year three and $100 million by year five.

Visit Ixia at www.ixiacom.com

Visit Keysight Technologies at www.keysight.com