The U.S. Department of Justice's Antitrust Division has announced that it will require Keysight Technologies Inc. to divest specific business units of Spirent Communications plc. to resolve antitrust issues stemming from their proposed merger valued at $1.5 billion.

A civil antitrust lawsuit has been filed in the U.S. District Court for the District of Columbia to block the merger unless the divestiture is completed. The proposed settlement aims to alleviate competitive concerns and, if approved, will allow the merger to proceed.

Assistant Attorney General Abigail Slater emphasized that the divestiture is crucial for maintaining competition in the high-speed ethernet testing, network security testing, and RF channel emulation markets. The divestiture to Viavi, a recognized test and measurement company, is expected to benefit consumers and businesses by fostering innovation and competition.

According to the complaint, Keysight and Spirent hold significant market shares in their respective sectors, controlling 85% of the high-speed ethernet testing market, over 60% of network security testing, and more than 50% of RF channel emulators. Their merger without divestiture could lead to increased prices, decreased quality, and stifled innovation.

The settlement requires Keysight to divest Spirent’s relevant business lines, which represent about 40% of Spirent’s total revenues, along with all necessary assets for production and sales. Viavi is anticipated to retain key employees from Spirent to support the divested operations.

Keysight, based in California, reported global revenues of approximately $4.97 billion in 2024, while Spirent, headquartered in the UK, had revenues of about $460.2 million in the same year. The proposed settlement will be published in the Federal Register, allowing public comments for 60 days before a final judgment is made.