Keysight Technologies outbid rival Viavi Solutions to buy Spirent Communications for about 1.16 billion pounds ($1.46 billion), winning a battle over the U.K. telecoms testing firm's expertise in automation.
Shares in London-listed Spirent were up 10.6 percent to 198.0 pence as of 0957 GMT. Electronic equipment maker Keysight offered 201.5 pence per share, topping Viavi's 175 pence bid in early March.
Spirent possesses capabilities in software, cloud and automation technologies as next-generation communication networks including 6G become increasingly software-based, driven by advances in areas such as artificial intelligence and machine learning.
Spirent, which had earlier agreed to a deal with Viavi, withdrew its support as it was 15 percent lower than the Keysight offer.