DOJ Adds Conditions to Keysight $1.5 Billion Spirent Acquisition

The Department of Justice on Monday sued to block Keysight Technologies Inc.'s $1.5 billion acquisition of Spirent Communications PLC but also offered the potential for a settlement if Keystone were to divest three business units to resolve antitrust concerns.

Keysight and Spirent are the dominant providers of high-speed ethernet testing equipment, network security testing equipment, and radio frequency channel emulators in US.

The proposed deal, announced last year, “would extinguish the competition between them” and harm customers in violation of Section 7 of the Clayton Act if conditions aren’t met, according to the DOJ’s suit filed in the US District Court for the District of Columbia.

The DOJ’s settlement offer would require Keysight to divest Spirent’s high-speed ethernet testing, network security testing, and RF channel emulation businesses to Viavi Solutions Inc. Together, the three business units account for about 40% of Spirent’s total revenues.

The case adds to litigation brought by the Trump administration seeking to block deals including Hewlett Packard Enterprise Co.'s $14 billion acquisition of Juniper Networks Inc.

Antitrust enforcers under President Joe Biden, including FTC Chair Lina Khan, preferred attempting to block deals outright instead of offering settlement conditions. This move by the Trump DOJ is in line with practices that predated the Biden administration.

“This structural solution preserves competition for key testing equipment used to ensure that data moves quickly and securely across the world,” Assistant Attorney General Abigail Slater said in a news release. “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.”

Keysight is based in Santa Rosa, Calif., with nearly $5 billion in global revenues in 2024. Spirent is an England-based provider of testing solutions for networks and cybersecurity, with $460 million in global revenues last year.

Last year, Keysight offered to purchase Spirent for $1.5 billion and Spirent’s shareholders accepted Keysight’s offer.

High-speed ethernet testing is critical for networks supporting high-bandwidth use cases, such as running artificial intelligence algorithms.

Keysight and Spirent didn’t immediately respond for inquires.

The case is US v. Keysight Technologies Inc., D.D.C., No. 1:25-cv-01734, 6/2/25.