Keysight Technologies Inc

KEYS

Keysight Technologies Inc

@capurs
• 4 hours ago

Keysight's Acquisitions in 2025

Keysight recently made acquisitions that will directly contribute to their portfolio of offerings/services.

On October 15, 2025, Keysight acquired all of the outstanding common stock of Spirent Communications plc (‘‘Spirent’’) for $1.415 billion, using existing cash.

On October 16, 2025, Keysight divested Spirent’s high-speed ethernet, network security, and channel emulation business lines for $399 million to Viavi Solutions Inc. (‘‘Viavi’’).

On October 17, 2025, Keysight acquired the Optical Solutions Group business (‘‘OSG’’) from Synopsys, Inc. (‘‘Synopsys’’) for $578 million, which was divested from Ansys to meet a regulatory requirement after the Synopsys-Ansys Merger.

Also on 17Oct2025, Keysight acquired PowerArtist RTL business (‘‘PowerArtist’’) from Ansys, Inc. (‘‘Ansys’’) for $26 million.

So net cash used for acquisition activities was 2026M - 399M = $1.623 billion

The fiscal year ended October 31, 2025 so these acquisitions have had <1% realized impact on revenues for 2025 according to their report.

Looking at the value of Spirent Communications, their most recent half year 2025 report showcased

  • $310M of orders

  • $208M Revenue

  • $148.4M Profit - 140.9M Operating Costs

  • $7.5M net profit

  • Ended up with +$19.4M Free Cash Flow after some taxes, deferred pensions, cap ex, and a large ($17M) cash influx from "Working capital movement"

Further Operating Costs breakdown:

  • $50.1M product development

  • $64M Selling/Marketing

  • $26.5M Administration

So frankly, adding $310M of orders and $208M of revenue to Keysight's books sounds attractive, but with only $7.5M net profit to show for it is disappointing. I'm not sure what to expect in terms of operating costs being reduced after the acquisition. Perhaps the Selling/Marketing/Administration (huge % of total operating costs) could be reduced significantly?

  • Regarding the Optical Solutions Group "OSG" business from Synopsys, the OSG acquisition is a software suite related to design with imaging/lighting

  • Core Software Portfolio of "OSG":

    • CODE V: Software for imaging system design.

    • LightTools: Software for illumination design.

    • LucidShape: Software for automotive lighting design.

    • RSoft Photonic Device Tools: For electromagnetic simulation of photonic components.

    • ImSym: Virtual prototyping for imaging systems.

    • Specific revenue for the OSG isn't publicly segmented, and I couldn't find detail in the Synposys 2025/2024 annual report or Ansys 2024 report unfortunately.

    • Although I found in a Synopsys statement from 2024 that their plans to divest businesses (among them "OSG") represented up to "$200 million of revenue"

So I found it difficult to quantify the impact the Synopsis Optical Solutions acquisition will have on Keysight's revenue/income. The ballpark would be a reasonable rate of return on their $578M investment I suppose?