Viavi To Buy Inertial Labs For $150M To Boost Defense, Automation And Aerospace Markets

After failing to acquire Spirent Communications earlier this year, Viavi Solutions is planning to buy Inertial Labs for $150 million. Here’s why.

Networking standout Viavi Solutions is acquiring Inertial Labs for $150 million in a move to expand its aerospace and defense market reach as well as drive its automation innovation.

Viavi CEO Oleg Khaykin said with a complementary portfolio, Inertial Labs will boost “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.”

Chandler, Ariz.-based Viavi said the purchase will add $50 million in annual revenue as it will expand Viavi’s network and service enablement business.

Inertial Labs is a developer and supplier of high-performance positioning and navigation solutions for aerospace, defense and industrial applications.

The Viavi-Inertial Deal

The deal is projected to close sometime during the first quarter of 2025.

Viavi will pay $150 million at closing through cash on hand.

Leesburg, Va.-based Inertial Labs offers inertial measurement units, inertial navigation systems, assured position navigation and timing, tracking, LiDAR scanning, alternative navigation and visual navigation solutions.

Viavi said these technologies are complementary to its existing aerospace and defense solutions.

In addition, Inertial Labs solutions include enablement of utility inspection through LiDAR and photogrammetry algorithms, and smart system navigation for both airborne and autonomous ground vehicles. This will accelerate Viavi’s entrance into industrial and autonomous delivery and transportation end markets.

Viavi is a global provider of network test, monitoring and assurance solutions with a focus on telecommunications, cloud, enterprise, first responder, military, aerospace and railway markets.

Viavi’s Failed Spirent Acquisition

In March, Viavi unveiled plans to buy telecommunications test specialist Spirent Communications for approximately $1.3 billion in a move to accelerate artificial intelligence, 5G and cloud-native innovation.

However, just weeks after the announcement, Keysight Technologies outbid Viavi by announcing the acquisition of Spirent for $1.46 billion.

Spirent’s board of directors withdrew its recommendation of the Viavi offer.