Keysight Technologies To Buy Ixia For About $1.6 Bln In Cash

(RTTNews) - Keysight Technologies Inc. (KEYS) has agreed to acquire Ixia (XXIA) in an all-cash transaction totaling approximately $1.6 billion in consideration, net of cash, the two companies said Monday.

Under the terms of the deal, Ixia shareholders will receive $19.65 per share in cash. This represents a premium of about 45 percent to Ixia's unaffected closing stock price on December 1, 2016, the last trading day prior to media reports that Ixia was considering strategic alternatives.

The board of directors of both companies have unanimously approved the transaction, which is anticipated to close no later than the end of October 2017. The transaction is subject to approval by Ixia shareholders.

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 unique combination of Layer 1 through 7 end-to-end solutions that address fast-growing segments of the 5G communications design and test ecosystem.

Keysight expects the transaction to be immediately accretive to its 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.

Keysight has entered into voting agreements with Errol Ginsberg, Chairman of the Board of Ixia, and Katelia Capital Group, Ltd., collective owners of about 23 percent of Ixia's outstanding common stock, pursuant to which the shareholders have agreed to vote their shares in support of the transaction.