KEYS.N), a supplier of software program and tools to the electronics business, is nearing a deal to accumulate U.S. information know-how firm Ixia (XXIA.O) for greater than $1.6 billion, in keeping with individuals aware of the matter.
The deal comes because the rising quantity of knowledge traffic flowing by social media, smartphones and cloud computing checks the resilience and integrity of networks, making Ixia’s tools and purposes extra common with its shoppers and coveted by its friends.
Keysight is finalizing acquisition phrases with Ixia after prevailing in an public sale for the corporate, and will announce a deal as early as Monday, the individuals stated on Sunday.
While the precise deal worth couldn’t be discovered, Keysight can pay greater than $19 per share for Ixia, the individuals stated. That compares with the roughly $13.50 stage Ixia shares traded at earlier than Reuters reported on Dec. 2 that the corporate was exploring a sale.
Ixia shares ended buying and selling on Friday at $18.20.
The sources requested to not be recognized as a result of the negotiations are confidential. Ixia declined to remark, whereas Keysight didn’t instantly reply to a request for remark.
Based in Calabasas, California, Ixia makes tools that displays and checks networks so enterprise clients can have their information journey easily with out bottlenecks. Its clients embrace the world’s largest networking gear maker, Cisco Systems Inc.
Ixia additionally makes that helps safe networks. Its chief govt officer stated on its newest earnings convention name that 35 p.c of its whole enterprise was tied to safety merchandise.
Ixia was based by Errol Ginsberg in 1997 and went public in 2000, as web traffic began to extend.
Ixia’s former CEO, Vic Alston, resigned in 2013 for misstating tutorial credentials and different particulars resembling his age and job historical past, the corporate stated on the time. The firm recruited a senior networking govt from Hewlett Packard, Bethany Mayer, to be its CEO in 2014.
Ixia generated income of $123.9 million within the third quarter, down from $125.9 million in the identical quarter a 12 months earlier.
Based in Santa Rosa, California, Keysight helps firms take a look at merchandise which have digital elements. It has a market capitalization of round $6.4 billion.
Reuters first reported final Wednesday that Keysight was exploring an acquisition of Ixia.
(Reporting by Liana B. Baker in San Francisco and Greg Roumeliotis in New York; Editing by Meredith Mazzilli)