(Adds background and company and analyst comment).
By Rory Gallivan
LONDON--U.K.-based mobile testing services group Anite PLC's
(AIE.LN) board have agreed to be bought by U.S. peer Keysight
Technologies Inc (KEYS), a deal that comes as consolidation among
telecommunications customers pressures testing companies.
As part of the deal, worth around 388 million pounds ($606
million), Anite shareholders will receive 126 pence per share, a
22.3% premium to Anite's closing price Tuesday, the two companies
said Wednesday.
Shares in Anite were up 23% to 127 pence at 0851 GMT. Panmure
Gordon analyst George O' Connor said Anite shareholders are likely
to seek "a competitive bid."
Anite Chairman Clay Brendish said the deal has a "strong
strategic logic" as the company's software expertise would
complement Keysight's hardware capabilities.
He added: "Our market has been characterised by ongoing customer
consolidation, increasing the importance of scale and strength to
support customers around the globe and invest in major research and
development programmes across the technology cycle."
A spokesman for Anite said deals such Microsoft Corp's (MSFT)
2013 acquisition of Nokia Corp's (NOK1V.HE) mobile phone business
had resulted in reduced orders for Anite. Anite, in its latest
financial results for the half year ended October 31, said the
handset testing industry continues to suffer from consolidation
among customers.
"The combination of Keysight and Anite--two global leaders with
complementary strengths--enables us to offer a broad portfolio of
leading-edge solutions throughout the wireless research and
development cycle," said Ron Nersesian, president and chief
executive of Keysight.
Keysight provides measurement services in the wireless
communications, aerospace and defense and semiconductor market.
Hampshire-based Anite provides laboratory-based systems for
testing mobile devices and tools that collect data on network
coverage and performance.
-Write to Rory Gallivan at rory.gallivan@wsj.com; Twitter:
@RoryGallivan
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