Inertial Labs acquisition fuels Viavi’s growth in key markets

Viavi Solutions has announced its acquisition of Inertial Labs to strengthen its position in the rapidly evolving aerospace, defence and industrial markets. The deal includes an upfront payment of US$150 million, with an additional US$175 million tied to performance milestones over four years. This major strategic acquisition for the geospatial and navigation sectors is funded entirely from Viavi's cash reserves.

Viavi offers advanced network testing, monitoring and assurance solutions across sectors such as telecommunications, cloud, enterprise and transportation. The company also excels in light management technologies for applications like 3D sensing, anti-counterfeiting, consumer electronics and aerospace.

Located in Leesburg, Virginia, USA, Inertial Labs specializes in highly advanced orientation, positioning and navigation technologies tailored for the aerospace, defence and industrial sectors. Its advanced product range includes inertial measurement units (IMUs), navigation systems (INS), GNSS tracking and visual navigation, as well as innovative solutions like assured position, navigation and timing (APNT), alternative navigation (ALTNAV) and Lidar scanning.

Integrating advanced technologies

By integrating technologies such as photogrammetry and Lidar algorithms, Inertial Labs enables precision utility inspection and enhances navigation for airborne and autonomous ground vehicles. This expertise complements Viavi's existing solutions, paving the way for expansion into industrial and autonomous delivery markets, along with broader applications in transportation and defence.

"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 defence 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.

"We are excited that our expertise, precision solutions and resources provide expansion opportunities for Viavi in high-growth markets and applications such as drone-based Lidar and camera systems," commented Jamie Marraccini, president and CEO of Inertial Labs.

The acquisition is expected to add approximately US$50 million to Viavi's Network and Service Enablement (NSE) annual revenue in calendar year 2025. It is expected to be accretive to EPS within 12 months of closing. The acquisition has been approved by the Board of Directors of each company. It is expected to close during the first quarter of calendar year 2025, subject to certain regulatory approvals and customary closing conditions.