(Bloomberg) -- Keysight Technologies has made an offer for struggling UK telecom network testing company Spirent Communications Plc, exceeding an earlier bid for the UK company from Viavi Solutions Inc. 

Keysight has agreed to buy Spirent for 201.5 pence per share, a price which includes a 2.5 pence special dividend, and values Spirent’s equity at £1.16 billion ($1.5 billion), the companies said in a statement on Thursday. The Spirent board has withdrawn its recommendation of the earlier Viavi bid, which valued the company at £1 billion. 

Spirent — which provides automated testing for networks and is used by companies that provide 5G, cloud and autonomous vehicle services — has struggled as its telecom customers grapple with increasing costs and delay unnecessary spending. The company reported revenue in 2023 that fell about 22% from the previous year. 

Spirent shares jumped 11% to 198 pence at 9:22 a.m. in London trading on Thursday. The stock has gained about 83% since March 4, the day before Viavi’s offer was announced. 

Read More: UK Plc Attracts Wave of Takeover Offers From Foreign Suitors 

The UK has become a hotbed for deals in the last few months, driven mainly by rock-bottom valuations. While British shares are cheaper than most overseas counterparts, companies also look attractive on a key M&A valuation measure, the multiple of enterprise value to earnings. On that basis, London trades at a 50% discount to global peers.

“The market environment remains challenging but with this strong strategic fit, bringing together our complementary services and solutions, we are confident in the opportunities this will bring for our stakeholders,” Spirent Chief Executive Officer Eric Updyke said in the statement. 

The deal will require investors holding at least 75% of voting rights to accept the terms and regulatory approval. 

A representative for Viavi didn’t immediately respond to a call seeking comment. 

(Updates with background on deal valuations in fifth paragraph.)

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