Keysight: DOJ Enforces First Merger Settlement with Divestitures
Deal News | Jun 02, 2025 | Fried Frank
The U.S. Department of Justice (DOJ) Antitrust Division has revived its approach to merger remedies with a significant settlement regarding Keysight Technologies’ proposed acquisition of Spirent Communications. After years of minimal pre-litigation settlements, particularly during Biden's administration, the DOJ's renewed embrace of divestiture remedies aims to alleviate competition concerns without resorting to lengthy litigation. Keysight is required to divest certain business areas to Viavi Solutions to satisfy competition requirements by resolving overlapping services in network testing and assurance. This settlement signals a return to traditional remedy practices aligning with Trump-era policies, where the DOJ was open to settlements for discrete competition concerns. Assistant Attorney General Slater emphasizes a robust framework for merger remedies, ensuring substantial commitments. The settlement incorporates provisions for monitoring and remedying any unforeseen competition issues over a specified term, indicating DOJ’s strengthened stance for effective oversight.
Sectors
- Antitrust and Competition Law
- Network Testing and Assurance
Geography
- United States – The DOJ’s actions and enforcement policies are based in the U.S., impacting domestic merger practices.
- United Kingdom – Spirent Communications plc is headquartered in the UK, applying international jurisdiction considerations.
Industry
- Antitrust and Competition Law – The article discusses the DOJ's revival of merger remedies to ameliorate antitrust concerns.
- Network Testing and Assurance – The companies involved provide network testing, measurement, and assurance services, highlighting industry relevance.
Financials
- Not specified – The settlement terms and financial aspects of the divestitures are not detailed.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Keysight Technologies, Inc. | Target Company | Company | A company proposing to acquire Spirent Communications, requiring divestitures to meet DOJ conditions. |
| Spirent Communications plc | Selling Company | Company | Company being acquired by Keysight, involved in network test and assurance solutions. |
| Viavi Solutions Inc. | Bidding Companybuyer | Company | Company acquiring divestiture assets from Keysight to resolve DOJ competition concerns. |
| U.S. Department of Justice (DOJ) | Government Antitrust Regulator | Government | The DOJ seeks to enforce antitrust regulations and ensure competitive practices through merger remedies. |
| Fried Frank | Legal Advisor | Company | Provided legal advice to Viavi Solutions in its acquisition efforts and related divestitures. |