Keysight to acquire Ixia to boost software centric test and 5G
The combination of Keysight and Ixia brings together two highly complementary companies to create an innovative force in leading-edge technologies that spans electronic design, device and network validation, and application and security performance. Ixia has a broad IP portfolio that encompasses network communications, visibility, application and security technologies with solutions deeply rooted in software. Additionally, Ixia’s IP includes extensive networking and wireless protocols that will extend Keysight’s position in wireless communications and create a combination of Layer 1 through 7 end-to-end systems targeting the fast-growing segments of the 5G communications design and test ecosystem.
“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. “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 acquisition aims to create a powerful innovation engine that will enable a combination of Layer 1 through 7 end-to-end systems for assessing performance from the mobile device to the data center and the cloud. It will also expand Keysight’s software capabilities by adding engineering talent and software-centric solutions with a high gross-margin profile.
The acquisition increases Keysight’s SAM by approximately $2.5 billion and establishes a strong position in fast-growing segments. The combined company will serve over 100 countries around the world. The combined company will have an attractive financial profile with enhanced cash flow driven by synergies, scale and improved revenue growth.
Keysight expects the transaction to be immediately accretive to adjusted earnings with annual cost synergies of $60 million, 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.
www.ixiacom.com
www.keysight.com
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