The deal comes as the increasing volume of traffic flowing through smartphones makes Ixia's equipment and applications more popular with its clients and coveted by its peers
Bengaluru: Keysight Technologies Inc, a provider of software and equipment to the electronics industry, said it would buy US data technology company Ixia for about $1.6 billion, net of cash.
The $19.65 per share offer is at a premium of about 8% to Ixia’s Friday close. Shares of Calabasas, California-based Ixia were up 5.5% at $19.20 in pre-market trading on Monday. Ixia’s shares have risen 34.3% since Reuters reported that it was exploring a sale in December.
Ixia makes equipment that monitors and tests networks so enterprise customers can have their data travel smoothly without bottlenecks. Its customers include the world’s No. 1 networking gear maker, Cisco Systems Inc. Reuters reported last week that the companies were in merger talks.
The deal comes as the increasing volume of data traffic flowing through social media, smartphones and cloud computing tests the resilience and integrity of networks, making Ixia’s equipment and applications more popular with its clients and coveted by its peers.
Santa-Rosa, California-based Keysight said the transaction would add to its adjusted earnings with annual cost synergies of $60 million. Reuters
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