Keysight Technologies to acquire English wireless software firm Anite

Santa Rosa’s Keysight Technologies announced a $606 million deal to buy an English company that makes software testing systems for wireless phone manufacturers.

Keysight, the largest company headquartered in Sonoma County, plans to acquire Anite, which it described as a leading supplier of test and measurement solutions to the international wireless market.

In past conference calls with Wall Street analysts, Keysight has expressed interest in pursuing acquisitions to grow its revenues in key three areas: products for wireless communications, “modular” products that allow the combination of components for customized measurement devices, and software testing programs. Anite appears to address two of those three growth areas.

“As a leading supplier of software solutions for wireless research and development, Anite is aligned with Keysight’s strategy to grow in wireless and increase our software offerings,” Keysight President and CEO Ron Nersesian said in a statement late Tuesday night.

“The combination of Keysight and Anite - two global leaders with complementary strengths - enables us to offer a broad portfolio of leading-edge solutions throughout the wireless research and development cycle,” Nersesian said. “This will help us to expand our portfolio into the software layer for design and validation, and expand Keysight’s position as a supplier for wireless design and validation tools. We look forward to welcoming the talented team at Anite and the value this combination will deliver to customers worldwide.”

Keysight is the world’s largest electronics measurement company and the biggest business ever based in Santa Rosa. It employs 9,600 workers around the world, operates 12 research and development centers and does business in more than 100 countries.

In the quarter ending April 30, Keysight reported revenues of $740 million, unchanged from a year earlier.

Anite is based in the town of Fleet, southwest of London. The company employs more than 500 workers and reported revenues of £109 million, or $172.5 million, for the year ending April 30, 2014.

Keysight said it had set a value of Anite stock at £1.26 per share, which amounts to £388 million or, $606 million, for the company.

In materials prepared for investors, Keysight said the value amounted to a 22 percent premium over Anite’s share price Tuesday. The acquisition was described as an efficient use of overseas cash that would produce an expected return on invested capital of 15 percent within five years.

Keysight also estimated operational cost savings of $20 million within two years following completion of the acquisition.

“This cash acquisition has been unanimously recommended by the board of directors of Anite,” according to Keysight’s press release.

The company noted that the transaction is subject to a number of conditions, including regulatory approvals and the approval of Anite’s shareholders. If those conditions are met, the transaction is expected to close by the end of October.

You can reach Staff Writer Robert Digitale at 521-5285 or robert.digitale@pressdemocrat.com. On Twitter @rdigit.