RSS Viavi To Buy Inertial Labs For For Initial Consideration Of $150 Mln

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 RSS Viavi To Buy Inertial Labs For For Initial Consideration Of $150 Mln

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Viavi Solutions Inc. (VIAV) announced on Friday its plan to acquire Virginia-based Inertial Labs, Inc. The purchase will initiate with a payment of $150 million upon closure, with the potential for additional payments totaling up to $175 million over the next four years, contingent upon certain conditions.

This strategic acquisition is poised to bolster Viavi's footprint both domestically and internationally within the aerospace and defense sectors. Additionally, it will facilitate the company's entrance into autonomous systems—spanning air, land, and sea—in military and industrial markets.

Viavi projects that this acquisition will lead to an approximately $50 million increase in its Network and Service Enablement revenue by the calendar year 2025. Furthermore, the company anticipates the acquisition will positively impact earnings per share (EPS) within a year of the deal’s completion.

The transaction is expected to finalize in the first quarter of 2025, with funding sourced from existing cash reserves.

As of now, Viavi's shares are trading at $11.15 on Nasdaq, reflecting an increase of 0.41 percent.

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