VIAVI Solutions has agreed to acquire Inertial Labs for up to $325 million as part of a push to expand its product portfolio and presence in defense, aerospace and industrial end markets.
The network test platforms provider said Friday it expects to close the acquisition during the first quarter of 2025, subject to regulatory clearances and other customary closing conditions.
Producing Positioning, Navigation Tech for Defense, Aerospace Applications
Founded in 2001, Inertial Labs develops and manufactures inertial measurement units, inertial navigation systems, assured position navigation and timing, GNSS tracking, LiDAR scanning, alternative navigation and visual navigation platforms for defense, aerospace and industrial applications.
The Leesburg, Virginia-based company supports smart system navigation for airborne and autonomous ground vehicles and utility inspection through LiDAR and photogrammetry algorithms.
“With a highly complementary product portfolio focused on alternate navigation solutions, this transaction supports VIAVI’s strategy to expand our presence in domestic and international aerospace and defense segments and accelerates our entry into autonomous air, land and sea systems in the military and industrial end markets,” said Oleg Khaykin, president and CEO of VIAVI.
Transaction Details
VIAVI plans to use its existing cash on hand to fund the transaction, which includes an initial consideration of $150 million at closing and contingent consideration of up to $175 million over four years.
The boards of directors of the two companies approved the acquisition, which is expected to add about $50 million to VIAVI’s Network and Service Enablement annual revenue in 2025 and be accretive to earnings per share within 12 months of closing.
VIAVI provides network test, monitoring and assurance platforms for military, aerospace, telecommunications, cloud, first responders, enterprises and railway. The Chandler, Arizona-based company also develops light manufacturing technologies for government and aerospace applications, 3D sensing, consumer electronics, anti-counterfeiting, industrial and automotive sectors.
